Virgin Galactic wants to borrow $500 million from investors to stay afloat
Capitalism in space: Virgin Galactic announced yesterday that it is offering investors a chance to loan it up to $500 million, an effort apparently to keep the company operating while it refits its WhiteKnightTwo carrier aircraft and its Unity spacecraft.
The company plans private offerings of $425 million in convertible senior notes that will mature in 2027, and an additional $75 million in notes is expected to be granted to the buyers, it said in a statement.
In response, the stock price for the company tumbled, dropping for the second time below the initial $11.75 price offered two years ago when the company went public. Unlike the previous time last week, the price has not quickly recovered, but has continued to fall, dropping to a new low today under $10.
When the company went public in early 2019, it predicted it would be flying commercial tourist flights in 2020. That did not happen, which should have been no surprise to investors considering the company’s failed track record of meeting its promised schedule. At present it says that the first commercial flight will occur near the end of this year. Don’t bet on it. I would not be surprised it bankruptcy occurs first.
Freedom carries great opportunity. It also carries great risk. For those who invested in Virgin Galactic and did not sell right after its one and only suborbital tourist flight in July ’21 (as did the company’s founder Richard Branson), it appears they are about to experience the latter.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Capitalism in space: Virgin Galactic announced yesterday that it is offering investors a chance to loan it up to $500 million, an effort apparently to keep the company operating while it refits its WhiteKnightTwo carrier aircraft and its Unity spacecraft.
The company plans private offerings of $425 million in convertible senior notes that will mature in 2027, and an additional $75 million in notes is expected to be granted to the buyers, it said in a statement.
In response, the stock price for the company tumbled, dropping for the second time below the initial $11.75 price offered two years ago when the company went public. Unlike the previous time last week, the price has not quickly recovered, but has continued to fall, dropping to a new low today under $10.
When the company went public in early 2019, it predicted it would be flying commercial tourist flights in 2020. That did not happen, which should have been no surprise to investors considering the company’s failed track record of meeting its promised schedule. At present it says that the first commercial flight will occur near the end of this year. Don’t bet on it. I would not be surprised it bankruptcy occurs first.
Freedom carries great opportunity. It also carries great risk. For those who invested in Virgin Galactic and did not sell right after its one and only suborbital tourist flight in July ’21 (as did the company’s founder Richard Branson), it appears they are about to experience the latter.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Has anyone here on BtB read the recent book ‘Test Gods: Virgin Galactic and the Making of a Modern Astronaut’.
I remember reading someplace about how Mark Stucky, a flight-test legend, warned about protecting the integrity of the flight-test program.
Here is a portion of the book description:
“Working from exclusive inside reporting, New Yorker writer Nicholas Schmidle tells the remarkable story of the test pilots, engineers, and visionaries behind Virgin Galactic’s campaign to build a space tourism company. Schmidle follows a handful of characters―Mark Stucky, Virgin’s lead test pilot; Richard Branson, the eccentric billionaire funding the venture; Mike Moses, the grounded, unflappable president; Mike Alsbury, the test pilot killed in a fatal crash; and others―through personal and professional dramas, in pursuit of their collective goal: to make space tourism a reality.”
Thank you BtB’s Original Mark for the info on the book. I will grab a copy of it.
As for V.G. asking for $500M, why throw good money after bad? Would Branson give a loan to his own company? I think not.
Of more interest to me is the Italian SIMONA concept where they want to retrofit an aircraft carrier as a Sea Launch deal. No Truax deal…but this could both launch, catch-and perhaps refurbish rockets at sea? I think there will be 14 more Protons…and also from NSF..the Hwasong 8 has a 3000 km range…busy times space wise.