Shares fell victim to concerns over debt levels as they announced plans for an estimated $500 million in funding.
The company is seeking to raise $425 million from the sale of 2027 convertible senior notes, with an additional 75M option also expected to be granted at their discretion.
The beginning of commercial service for Virgin Galactic has been pushed to late this year at the earliest.
Shares of Virgin Galactic fell on Thursday after the company announced plans to raise to $500 million in debt.
The company is turning to the public for assistance in finding their next venture, which will be used towards building and developing spacecraft that can take people into space.
The company has plans to raise $425 million by selling 2027 convertible senior notes, with an additional 75M USD option also available for purchase.
The price of Virgin Galactic stocks fell as much at 12% in premarket trading from its previous close $12.37 to a low point near 10 dollars per share before closing up around Thursday’s level.”
Sir Richard Branson’s Virgin Galactic went public via a merger with an acquisition company this past October. The space tourism firm said it planned to begin flying customers in 2020, but delays have pushed back that schedule steadily since the merge-the first flight is now set for late 2021 or early 2022 at best according to their latest updates on Twitter
When will we see our next SpaceShipTwo?
With the recent delays, it seems that Virgin Galactic will have to wait until late this year or early next before they can start commercial service.
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