According to information obtained by News, Oxfordshire-based Reaction Engines has hired advisors in an effort to acquire further funds.
The company’s investors, who also include FTSE-100 arms producer BAE Systems, have been made aware in recent weeks of the efforts to raise further funding.
The consulting firm Silverpeak will oversee the fundraising; tens of millions of pounds more in funding are estimated to be needed by the company.
The former minister of defence, Philip Dunne, is the chairman of Reaction, which was established in 1989.
This company, which specializes in creating cutting-edge propulsion systems, is creating a new kind of engine that will enable airplanes to travel at Mach 25 outside of Earth’s atmosphere.
Mr. Dunne stated that the company’s financial performance for the previous year had “not been in line with our forecasts” in an update to investors that News was able to view.
He continued, saying, “Although the company has a successful track record of raising capital, it is clear that market conditions are tougher than when we last raised new equity in 2022.” Reaction Engines was also expected to lose money this year.
It declared in January of last year that it had secured a further £40 million in equity, bringing the total amount it had secured from investors to around £150 million.
