Ballie Gifford is buying approximately 44 million newly issued shares of Joby Aviation, a purchase that will provide $180 million in equity in the company as it continues to develop all-electric aircraft for commercial passenger service.
Joby Aviation said Wednesday as part of its first-quarter earnings report that it will sell 43,985,681 to the investment group at $4.10 a share, a move that boosts its balance sheet amid a stormy economic environment. The sale of shares is expected to end on May 5.
Shares of Joby Aviation closed Wednesday up 1.24% at $4.08.
Notably, Jobe said the funds are “expected to be used to accelerate early production of Joby, enabling the company to take advantage of revenue opportunities in the near term without affecting the funds available to continue the company toward electric vertical take-off and landing (eVTOL) aircraft type certification.” )”. What this means is
Paley Gifford is already a jobber investor. In January 2020, the company invested $15 million as part of the $590 million Joby Series C financing round led by Toyota. A year later, Ballie Gifford made a $49 million investment in a private public equity investment (or PIPE) that tied into Joby’s initial public offering through a merger with Reinvent Technology Partners, a special purpose acquisition firm from celebrity investor and LinkedIn. Founder Reid Hoffman and Zynga founder Mark Pincus.
Joby has been developing, certifying and producing an electric vertical take-off and landing (eVTOL) aircraft for more than a decade that will be used as a commercial city taxi service.
“Already in 2023 we have achieved important milestones in production, testing and financing, and I am very excited about our progress as we move towards our goal of launching the commercial service in 2025,” JoeBen Bevirt, Founder and CEO of Joby said in a statement. . “Baillie Gifford’s decision to invest further in Joby is a testament to their longstanding belief in electrification of transportation and their track record speaks for itself. We couldn’t be prouder to have their support.”
Joby on Wednesday reported a net income loss of $113.4 million, up 82% from a loss of $62.3 million in the same period last year. The company said the higher net loss compared to the first quarter of 2022 was primarily due to lower income
$45.7 million and top operating expenses of $5.4 million. Joby does not generate revenue from its taxi service because the company is still in the process of certifying its aircraft. The decrease in other income was due to an unfavorable revaluation of derivative liabilities in the first quarter and non-recurring income from our equity method investment, which was partially offset by higher interest income on our short-term investments, according to the report.
Like any company that has yet to market its product, Joby is spending capital. But the company still had $978 million in cash and short-term marketable securities at the end of the quarter. That number does not include Ballie Gifford’s new $180 million.
This story develops…