Today's announcement includes:
- Up to $50 million funding commitment by Mudrick Capital: on 20 December 2024, Mudrick Capital signed an investment agreement finalising its commitment of $25 million in upfront funding, and an additional $25 million backstop (as reduced by any amounts raised from third parties).
- Balance sheet strengthening: on 23 December 2024, Mudrick Capital completed the conversion of $130 million of debt into equity at a conversion price of $2.75 per Ordinary Share and agreed to fix the conversion price for the remaining $130 million at $3.50 per Ordinary Share. This transaction substantially reduces Vertical's debt and significantly deleverages the Company's balance sheet, enhancing its financial position. Mudrick Capital has also agreed with the Company to extend the loan repayment date by two years to December 2028, providing further security through Vertical's certification programme.
- Shareholder support for new governance arrangements and increased authorised share capital: at an EGM held on 23 December 2024, Vertical's shareholders voted in favour of certain amendments to the Company's memorandum and articles of association. These include provisions to establish a majority of independent directors on the Board, to grant Mudrick Capital proportional director nomination rights based on its share ownership (when above 10%), and to increase the Company's authorised share capital from $110,000 (representing 100 million ordinary shares and 10 million preferred shares) to $210,000 (representing 200 million ordinary shares and 10 million preferred shares).
