Proactive Investors - Virgin Orbit Holdings Inc (OTC:VORBQ) has met an earthbound end after confirming its assets will be sold off to four rivals just months after a failed attempt to launch a rocket into space from the UK.
Richard Branson’s company agreed to sell leases on property and its converted Boeing (NYSE:BA) 747 jet, which was used for launches, for just US$36mln – 1% of a US$3.7bn December 2021 valuation.
“Virgin Orbit’s legacy in the space industry will forever be remembered,” the former Nasdaq constituent said in a statement.
“Its ground-breaking technologies, relentless pursuit of excellence, and unwavering commitment to advancing the frontiers of air launch have left an indelible mark on the industry.”
Virgin Orbit’s headquarters will be sold to start-up Rocket Lab for US$16.1mln, its jet transferred to aerospace firm Stratolaunch for US$17mln and the Mojave desert launch site acquired by Launcher Inc for US$2.7mln.
Virgin Orbit carried out six missions since it was spun out of Branson’s Virgin Galactic in 2017, four of which were successful.
Failure to reach orbit during a final mission from Cornwall, UK, which was the country’s first, saw the company hit trouble in January though, leading to mass layoffs in March and a filing for bankruptcy protection a month later.
Ongoing talks with investors in the meantime failed to bear fruit, leaving Virgin Orbit with US$700,000 cash in April, after spending roughly US$50mln a quarter previously.
Accumulated losses sat at over US$1bn, meanwhile, according to Virgin Orbit’s bankruptcy filing.
Read more on Proactive Investors UK