Questions raised about Branson’s most recent Virgin Galactic stock sale
It appears that both Virgin Galactic and Richard Branson might have violated SEC regulations when they sold more than $800 million in stock this summer without notifying buyers of the FAA investigation into the anomaly on Branson’s July 11th suborbital flight that has now grounded all SpaceShipTwo flights.
On July 12, Virgin Galactic announced in a Securities and Exchange Commission filing that it was selling $500 million worth of common stock. The filing did not mention that during its edge-of-space flight the day before, its aircraft deviated from its air-traffic-control clearance, a mishap that would ultimately trigger a Federal Aviation Administration investigation and lead to the indefinite grounding of its space-tourism operation.
The FAA began investigating on July 23, a spokesperson told Insider. On August 11, the agency grounded Virgin Galactic’s rocket plane.
In an August 13 SEC filing, Richard Branson, the English billionaire who founded Virgin Galactic in 2004, said that in the previous three days, he had sold roughly 10.5 million personal shares, a stake worth about $300 million.
Let’s review the timeline.
July 11: The flight occurs, with high winds forcing it outside its planned flight path.
July 12: Virgin Galactic sells $500 million in stock, without mentioning the anomaly.
July 16: By this date the company was required to inform the FAA of any anomalies during the flight.
July 23: The FAA initiates its investigation..
August 11: The FAA grounds Virgin Galactic.
August 13: SEC filing reveals Branson had sold $300 million in stock without mentioning the anomaly.
September 1: New Yorker article reveals investigation of anomaly.
Though no investigation had been started, Virgin Galactic must have known about the flight anomaly when it sold its $500 million in shares on July 12, right after the flight.. By August, when Branson sold his $300 million in shares, that investigation was on-going. Yet he also failed to mention the anomaly.
As I have said before, Branson has all the markings of a conman. He has very carefully been selling stock, reducing his share in the company in the past two years from 51% to 18%, with each stock sale carefully timed to take advantage of some event that pumped up the stock’s price.
All in all, the pattern by Branson suggests he really does not have much faith in Virgin Galactic’s future.
Now available in hardback and paperback as well as ebook!
From the press release: In this ground-breaking new history of early America, historian Robert Zimmerman not only exposes the lie behind The New York Times 1619 Project that falsely claims slavery is central to the history of the United States, he also provides profound lessons about the nature of human societies, lessons important for Americans today as well as for all future settlers on Mars and elsewhere in space.
Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space, is a riveting page-turning story that documents how slavery slowly became pervasive in the southern British colonies of North America, colonies founded by a people and culture that not only did not allow slavery but in every way were hostile to the practice.
Conscious Choice does more however. In telling the tragic history of the Virginia colony and the rise of slavery there, Zimmerman lays out the proper path for creating healthy societies in places like the Moon and Mars.
“Zimmerman’s ground-breaking history provides every future generation the basic framework for establishing new societies on other worlds. We would be wise to heed what he says.” —Robert Zubrin, founder of founder of the Mars Society.
All editions are available at Amazon, Barnes & Noble, and all book vendors, with the ebook priced at $5.99 before discount. The ebook can also be purchased direct from my ebook publisher, ebookit, in which case you don't support the big tech companies and I get a bigger cut much sooner.
Autographed printed copies are also available at discount directly from me (hardback $24.95; paperback $14.95; Shipping cost for either: $5.00). Just email me at zimmerman @ nasw dot org.
It appears that both Virgin Galactic and Richard Branson might have violated SEC regulations when they sold more than $800 million in stock this summer without notifying buyers of the FAA investigation into the anomaly on Branson’s July 11th suborbital flight that has now grounded all SpaceShipTwo flights.
On July 12, Virgin Galactic announced in a Securities and Exchange Commission filing that it was selling $500 million worth of common stock. The filing did not mention that during its edge-of-space flight the day before, its aircraft deviated from its air-traffic-control clearance, a mishap that would ultimately trigger a Federal Aviation Administration investigation and lead to the indefinite grounding of its space-tourism operation.
The FAA began investigating on July 23, a spokesperson told Insider. On August 11, the agency grounded Virgin Galactic’s rocket plane.
In an August 13 SEC filing, Richard Branson, the English billionaire who founded Virgin Galactic in 2004, said that in the previous three days, he had sold roughly 10.5 million personal shares, a stake worth about $300 million.
Let’s review the timeline.
July 11: The flight occurs, with high winds forcing it outside its planned flight path.
July 12: Virgin Galactic sells $500 million in stock, without mentioning the anomaly.
July 16: By this date the company was required to inform the FAA of any anomalies during the flight.
July 23: The FAA initiates its investigation..
August 11: The FAA grounds Virgin Galactic.
August 13: SEC filing reveals Branson had sold $300 million in stock without mentioning the anomaly.
September 1: New Yorker article reveals investigation of anomaly.
Though no investigation had been started, Virgin Galactic must have known about the flight anomaly when it sold its $500 million in shares on July 12, right after the flight.. By August, when Branson sold his $300 million in shares, that investigation was on-going. Yet he also failed to mention the anomaly.
As I have said before, Branson has all the markings of a conman. He has very carefully been selling stock, reducing his share in the company in the past two years from 51% to 18%, with each stock sale carefully timed to take advantage of some event that pumped up the stock’s price.
All in all, the pattern by Branson suggests he really does not have much faith in Virgin Galactic’s future.
Now available in hardback and paperback as well as ebook!
From the press release: In this ground-breaking new history of early America, historian Robert Zimmerman not only exposes the lie behind The New York Times 1619 Project that falsely claims slavery is central to the history of the United States, he also provides profound lessons about the nature of human societies, lessons important for Americans today as well as for all future settlers on Mars and elsewhere in space.
Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space, is a riveting page-turning story that documents how slavery slowly became pervasive in the southern British colonies of North America, colonies founded by a people and culture that not only did not allow slavery but in every way were hostile to the practice.
Conscious Choice does more however. In telling the tragic history of the Virginia colony and the rise of slavery there, Zimmerman lays out the proper path for creating healthy societies in places like the Moon and Mars.
“Zimmerman’s ground-breaking history provides every future generation the basic framework for establishing new societies on other worlds. We would be wise to heed what he says.” —Robert Zubrin, founder of founder of the Mars Society.
All editions are available at Amazon, Barnes & Noble, and all book vendors, with the ebook priced at $5.99 before discount. The ebook can also be purchased direct from my ebook publisher, ebookit, in which case you don't support the big tech companies and I get a bigger cut much sooner.
Autographed printed copies are also available at discount directly from me (hardback $24.95; paperback $14.95; Shipping cost for either: $5.00). Just email me at zimmerman @ nasw dot org.
Readers: the rules for commenting!
No registration is required. I welcome all opinions, even those that strongly criticize my commentary.
However, name-calling and obscenities will not be tolerated. First time offenders who are new to the site will be warned. Second time offenders or first time offenders who have been here awhile will be suspended for a week. After that, I will ban you. Period.
Note also that first time commenters as well as any comment with more than one link will be placed in moderation for my approval. Be patient, I will get to it.