Virgin Galactic plans to sell more stock after reporting quarterly revenue; Shares fall

Virgin Galactic Holdings Inc. reported no revenue in the second quarter and has collected less than $ 200,000 in 2020, but expects to pull in millions by selling fresh stock.

The space-tourism company posted a loss on Monday afternoon of $ 62.5 million, or 30 cents per share, after posting a loss of 19 cents on sales of about $ 600,000 in the same quarter a year earlier. In a filing with the Securities and Exchange Commission, the company also announced that it expects to sell approximately 20.5 million fresh shares, which would pull in about $ 500 million at the coming rate.

Virgin Galactic Shares SPCE,
+ 6.99%
Trading declined 9 hours after the results of the stock offering and immediately after the announcement.

Virgin Galactic was taken public late last year through a special-purpose acquisition company, or SPAC, named social capital Hedosopia Holdings, launched by venture-capital investor Chamath Palihipitiya, the company’s president. Are made The shares have more than doubled since the merger with the space-tourism company to create a publicly traded entity, and the company’s turnover was more than $ 5 billion, as shares traded on Day 7 on Monday. Up to%.

“We are making substantial progress in many areas of the company as we focus on our path to commercial launches and the steps we are taking to get there, including operating our first powered spaceflight from Spaceport America Is, ”Chief Executive Officer Michael Colgazier said in a statement on Monday. Colglazier, a former Walt Disney Company DIS,
The executive was named the new CEO of Virgin Galactic last month, while former CEO George Whitsides became chief space officer.

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The exact date of when Virgin Galactic began taking tourists into space has not been determined, but last week unveiled the interior of its spacecraft and customers will experience their journey. The company said in its stock filings that it expects its founder, Richard Branson, to fly into space in the first quarter of 2021, as long as planned test flights – including a callgazer mentioned in the fall – fly with commercial flights. Plan not to fill up later.

Initial visits were sold for $ 250,000, and Virgin Galactic said on Monday that it had received deposits for about 600 customers and faced “minimum” requests for refunds. A dozen customers entered into deposit agreements in the quarter, the company reported.

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