Virgin Galactic Holdings Inc. (SPCE) stocks fell in pre-market trades on Thursday after the company announced its plans of raising about $500 million in debt. The stock previously closed at $12.37 and was trading at $10.94, down 1.43 points (-11.56%) in the pre-market trades at 8:32 am GMT-5.
“The company intends to use the net proceeds from the offering to fund working capital, general and administrative matters and capital expenditures to accelerate the development of its spacecraft fleet,”
Virgin Galactic said.
Virgin Galactic (SPCE), the American space flight company, was founded by Richard Branson. The company intends to raise $425 million from the sale of its 2027 convertible senior notes. The deal would be made through a private offering. An additional $75 million is also expected from the buyers as a grant.
Richard Branson’s Virgin Galactic went public via a SPAC from Chamath Palihapitiya in October 2019. The space tourism company had said that it planned to start flying the customers in 2020, but Covid-19 and the spacecraft testing and development have delayed the schedule.
Earlier in September, the company had pushed the schedule and said that the first flight might be ready to carry the customers in 2022. But, the beginning of commercial service seems to have been pushed back again.
Virgin Galactic Holdings Inc. (SPCE) stock has plunged in the last six months by around 70%. The stock traded at $37.76 in July but now has come down t $11.
With a market capitalization of $3.192 billion, the SPCE stock has peaked at $62.80 in the last 52-weeks. The stock is trading at its lowest in the previous 52-week range. The stock’s one-year target estimate stands at $24.82.
Many investors hoped that the SPCE stock would fly again.