Cecilia Garland - Jun 28, 2023
Listen to this article 00:01:52
Your browser doesn’t support HTML5 audio

Space tourism company Virgin Galactic has raised $300 million since the beginning of the year. It intends to issue shares to raise another $400 million, according to a document released last week by the U.S. Securities and Exchange Commission (SEC).

The announcement was not well-received by investors as it would significantly decrease the value of existing shares. Virgin Galactic's market capitalization was only $1.5 billion.

In electronic trading after Wall Street closed, the stock fell nearly 10%, bringing its loss to 6.83% in a one-day session. Virgin Galactic's space program has suffered several years of delays, including a 2014 accident that killed a pilot.

Launch this summer

Then, after the space flight that transported its founder, the British Richard Branson, in July 2021, the company announced a pause dedicated to improving its spacecraft. This took much longer than initially planned. In late May, a Virgin Galactic spacecraft reached space for the first time in nearly two years in a final test before commercial operations began.

Two commercial flights are currently scheduled, one for June 29 and another for August, to establish a monthly schedule in the future. Passengers are offered the opportunity to experience a few minutes in space before returning to Earth, at a $450,000 fee.

According to the SEC filing, the California-based company plans to use the funds raised "to expand its fleet and infrastructure to increase its commercial flight capabilities," as well as to strengthen its financial reserves.

Related articles


Add Comment