German flying taxi startup Lilium to go public via a reverse merger with Qell

Lilium, a Munich-based startup making an all-electric vertical takeoff and landing passenger jet, is in talks to go public through a reverse merger with Qell Acquisition Corp.

On Tuesday, Lilium said it would float on the U.S. stock market in a deal that is valuing the combined company at $3.3 billion and also revealed its 7-Seater Jet.

Summary

  • Lilium is positioned to be the global leader in regional electric air mobility with its 7-Seater Lilium Jet, an electric vertical take-off and landing jet.
  • Using Lilium’s proprietary Ducted Electric Vectored Thrust (“DEVT”) technology, the 7-Seater Lilium Jet is projected to deliver the best unit economics, with market-leading capacity, low noise and high performance.
  • Lilium will be publicly traded through a reverse merger with Qell Acquisition Corp. (QELL).
  • Lilium said the combination with Qell, led by Barry Engle, the former president of General Motors North America, would support its objective of launching commercial operations in 2024.

Lilium is facing competition from other aviation startups that aim to change the way that taxis are working today and offer a new way for travelers to fight urban traffic and pollution. It is also facing competition from other companies that deploy battery-powered aircraft that can take off and land vertically.

Lilium and Qell merger transaction overview

The transaction has a pro forma valuation of $3.3 billion at the $10 per share PIPE price. Total gross proceeds to the company are expected to be approximately $830 million, including approximately $380 million in cash currently held in trust (assuming minimal redemptions) and the proceeds of a $450 million PIPE investment, including investments by Baillie Gifford, funds and accounts managed by BlackRock, Tencent, Ferrovial, LGT and its direct impact investing arm Lightrock, Palantir, Atomico, FII Institute and private funds affiliated with PIMCO.

Daniel Wiegand, Co-Founder and CEO of Lilium said, “We’re incredibly excited to reveal the development of our 7-Seater Lilium Jet and announce the next stage of our growth. This is a validation of all the hard work over the last five years from our talented team and our world-class partners and investors.

Our vision is to create a sustainable and accessible mode of high-speed travel and bring this to every community. Transport infrastructure is broken. It is costly in personal time, space consumption and carbon emissions. We are pursuing our unique electric jet technology because it is the key to higher-capacity aircraft, with lower cost per seat mile while delivering low noise and low emissions.

Today’s announcement brings us closer to launching our passenger service. In Qell, we have found a partner who shares our ambition for sustainable mobility and brings tremendous experience in running mobility and hardware businesses.”

Barry Engle, Founder and CEO, Qell added, “We are thrilled to be partnering with Lilium to together build the leader in regional electric air mobility. Qell set out to find an exceptional and ambitious technology company, with significant growth potential — and in Lilium we have found that. Lilium has unique technology and one of the most accomplished engineering and commercial teams in electric aviation. The 7-Seater Lilium Jet is a game-changer for transportation.

The experienced Qell leadership team is looking forward to working with Lilium. Our board has a collective set of experiences in growing businesses, strengthening operations, expanding globally, raising capital and creating long-term value.

I have spent my career in mobility and been part of the electrification of the automotive industry. The market and societal potential from the electrification of air travel is enormous. I, and the whole team at Qell, are excited for the impact Lilium can have and the part we can play.”

lilium merger with qell

About Lilium

Lilium was founded in 2015 and is based in Munich, however, it has 4 offices globally. The company has a diverse team focused on the aerospace industry in order to create electric flights a reality. Its founders are Daniel Wiegand and Sebastian Born, a specialist in propulsion who pioneered Lilium’s aircraft architecture and leader of construction, respectively.

The Lilium 7-Seater Jet

The Lilium 7-Seater Jet has a projected cruise speed of 175 mph at 10,000 feet and a range of 155+ miles.

The company has designed, built and tested 4 generations of prototypes of the current 5-seat technology demonstrator. In 2018, Lilium applied for concurrent type certification with EASA and FAA for a larger Lilium Jet and subsequently began work behind the scenes on its 7-seater – an aircraft enabling a sustainable and accessible mode of high-speed travel. In 2020 the 7-Seater Lilium Jet received CRI-A01 certification basis from EASA.

The company will introduce serial aircraft planned to launch commercial operations in 2024.

lilium jet
Source: https://lilium.com/

The technology used is Ducted Electric Vectored THRUST (DEVT). The electric jet engines are integrated into the wing flap in order to provide aerodynamic efficiency and lower noise while providing thrust vector control to maneuver the Lilium Jet through every phase of the flight.

Lilium has over 400 engineers and a leadership team responsible for delivering some of the most complex aircraft in aviation history. It is in talks for many partnerships with world-leading aerospace, technology and infrastructure partners including Aciturri, Toray Industries, Lufthansa Aviation Training, Ferrovial and Tavistock Development Company.

About Qell Acquisition Corp.
Qell Acquisition Corp. (NASDAQ: QELL) is a publicly-traded special purpose acquisition company,SPAC, seeking to invest in a high-growth business in the next generation mobility, transportation or sustainable industrial technology sectors.

qell acquisition corp merge with lilium
Source: https://qellspac.com/

The blank check company’s CEO, co-founder and director is Barry Engle who has spent the last five years serving in senior executive roles in General Motors Company (GM). Co-founder and CFO Sam Gabbita, led OGCI Climate Investments (CI).

Technicals analysis

The stock price is currently traded at a lower price than its IPO of $10, at $9.92. The stock has hit its highest high last month in February at $14.38 which gives it a large upside.

Disclaimer

We are very bullish on this stock acc to the fundamentals mentioned above and technical, but we urge you to do your own due diligence and decide if this stock can fit your investment portfolio. We are not certified analysts, and this is not a recommendation whatsoever but our own personal opinion and should be considered as so, stock displayed high volatility and can be considered a risky investment and may cause loss of capital so please analyze the stock carefully before making a decision.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.