LILM - Why Lilium Stock Is Flying 15% Higher Today
2024-05-06 11:35:00 ET
Shares of German flying electric-car manufacturer Lilium N.V. (NASDAQ: LILM) took off in a blaze of glory this morning, shooting 15.4% higher (through 10 a.m. ET) after announcing that Floridian air-taxi company UbranLink will buy 20 of its all-electric vertical take-off and landing (eVTOL) Lilium Jets and take out an option to buy 20 more. The announcement comes just days after Lilium filed notice with the SEC that one of its shareholders is planning to sell 75 million shares of Lilium stock.
These two announcements are probably not unrelated.
Let's back up a step and start off today with Friday's news. On May 3, Lilium made two filings with the SEC. First, it advised that private equity company YA II PN, Ltd (Yorkville) has entered into a Standby Equity Purchase Agreement. In exchange for Lilium paying Yorkville 1 million shares and $25,000, Lilium has the right to require Yorkville to buy up to $150 million worth of its stock at current market prices.
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Why Lilium Stock Is Flying 15% Higher Today