Virgin Galactic’s stock fell during today’s trading after the company announced plans to raise its debt by about $500 million, stating, “The company intends to use the net proceeds from the private offering to fund working capital, general and administrative matters as well as capital expenditures to accelerate development of its spacecraft fleet.” .
The space tourism company said it intends to raise $425 million through the sale of 2,027 convertible bonds via a private offer, in addition to $75 million in bond options that will be awarded to buyers, this is reflected in the collapse of Virgin Galactic stock by 16% from the price of $12.37, which was the last closing price of the stock.
The Virgin Galactic company of billionaire Richard Branson was floated on the stock market through a merger deal with SPAC from Kamath Palihapitiya in October 2019, noting that the British businessman recently announced the listing of his own company SPAC on the stock exchange. Read more [Billionaire Branson Aims to Launch SPAC in Amsterdam].
When Virgin Galactic announced it would start operating space travel for customers in 2020, Branson and three company employees made a test flight into space in July of 2021. Read more [Richard Branson arrives in space with a Virgin Galactic flight].
However, delays in its test flights since that time, as well as the development needed by the company, have prompted it to postpone its commercial services until late this year at least. Read more [Virgin Galactic Is Re-Offering Its Tickets With Prices Starting At $450K].