Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Virgin Orbit turns to founder for US$25mln of new investment

Published 08/11/2022, 08:24
Updated 08/11/2022, 09:11
Virgin Orbit turns to founder for US$25mln of new investment
ORBT
-

Virgin Orbit Holdings Inc (NASDAQ:VORB)'s race to space is proving to be more a marathon than a sprint.

Flights and timelines have been put back, while the company has turned to its founder Richard Branson's Virgin Group for a US$25mln cash injection, it was revealed overnight.

The coffers, it would seem, are dwindling. According to its third-quarter numbers, Virgin Orbit was sitting on US$71.2mln as of September 30.

Yet it’s less than a year since the company raked in US$228m via a merger with a special purpose acquisition company (SPAC) and parallel fundraiser. So, the burn rate has been tremendous.

In its update, the group lowered its forecast for launches for next year and said it now expects to make just three, down from the forecast of four to six.

It also said its backlog of binding contracts fell 12% to US$143mln.

Against a backdrop of tough market conditions coupled with a reality check for former SPAC businesses such as Virgin Orbit, the stock has tumbled 60% in the year to date, valuing the business at US$979mln.

The company is currently gearing up for the first orbital space launch from UK soil at Spaceport Cornwall later this month.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.