EHang and Eve End Year with Fresh Funding
New share issues and lines of credit were announced last week of 2022 as both companies manage the cost of bringing electric aircraft to market.
Two publicly-owned eVTOL developers bolstered their financial foundations in separate agreements valued potentially at more than $110 million. Transactions involving China's EHang and Eve Air Mobility—in which Brazilian aerospace group Embraer is the majority shareholder—were both announced on December 23. EHang is being boosted by a $10 million equity investment from Qingdao West Coast New Area.
The organization, which is one of China's government-backed 'national new areas,' further agreed to a potential additional $10 million investment in the future. EHang says it will use the funds as working capital. The investment in EHang is expected to close during the first quarter of 2023.
Meanwhile, Brazil's National Development Bank has agreed to issue Eve Air Mobility lines of credit totaling $92.5 million. The credit, which has a 12-year maturity period, will fund the development of Eve's four-passenger eVTOL aircraft. The agreement reinforces cash reserves at Eve, which on December 23 reported a net loss of $36.7 million for the third quarter of 2022.
This was almost 10 times the $3.8 million loss the company reported for the same period in 2021. The company said the increased loss was due to a significant uptick in research and development costs as the program progressed. Want more? You can find a longer version of this article at FutureFlight.aero, a news and information resource developed by AIN to provide objective coverage and analysis of cutting-edge aviation technology.