An electric vertical take-off and landing jet company is going public via SPAC with a merger announced Tuesday morning.
The SPAC Deal: Lilium announced a merger with Qell Acquisition Corp QELL, valuing the company at a pro forma equity value of $3.3 billion.
Qell Acquisition's leader is former General Motors Company GM North America president Barry Engle, who will join Lilium’s board of directors.
A PIPE of $450 million for the SPAC merger included investments from Baillie Gifford, BlackRock, Tencent Holdings ADR TCEHY, PIMCO, Palantir Technologies Inc PLTR, and others. Lilium will receive proceeds of $830 million. Current Qell Acquisition shareholders will own 11% of the company if the merger is approved.
About Lilium: Lilium is seeking to be the leader in the global eVTOL market. The company said it can save people hours with its eVTOL jets.
The company offers proprietary ducted electric vectored thrust technology. Lilium said in its presentation that 95% of commercial aircraft and business jets use ducted fans, which could make Lilium a popular option in the eVTOL space.
A new seven-seat Lilium jet was unveiled Tuesday along with the SPAC deal. The jet is said to have the best unit economics and market-leading capacity for passengers and cargo in the eVTOL market.
The Lilium seven-seat jet can reach speeds of 175 miles per hour, reach an altitude of 10,000 feet and have a range of around 155 miles.
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Growth Ahead: Commercial operations for Lilium are planned for 2024. A 100,000 square foot prototype manufacturing facility is in place in Munich.
The company plans on launching operations in Florida in 2024 with up to 14 vertiports, offering business-to-consumer flights and plans to scale to business-to-business operations in the future as well.
After the launch of the Lilium seven-seat jet, the company plans to offer a 16-seat jet that will take the company further in its growth phase.
Lilium lists a total addressable market size of $1.5 trillion to $3 trillion.
Financials: Lilium has $200 million in commitments from infrastructure partners, according to the presentation.
One Lilium seven-seat jet can produce $15,000 revenue per day and $5 million a year. The launch in Florida calls for 125 jets and $600 million in annual revenue, and the launch in Germany shows 190 jets and $900 million in annual revenue. The company is aiming for 90 jets to be operational in its first commercial year of 2024, with 1,000 jets operational globally by 2027.
Revenue forecasts from Lilium are $0.2 billion in fiscal 2024, $1.3 billion in fiscal 2025, $3.3 billion in fiscal 2026 and $5.9 billion in fiscal 2027.
QELL Price Action: Shares of Qell Acquisition are up 2.32% to $10.15 on Tuesday afternoon.
Related Link: Want to learn more about SPACs? Check out hosts Chris Katje and Mitch Hoch on Benzinga's "SPACs Attack" on YouTube.
(Photo: Lilium)
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