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Richard Branson to sell 25 million shares in Virgin Galactic to battle pandemic impact

Published 05/11/2020, 02:56 PM
Updated 05/11/2020, 03:10 PM
© Reuters. Richard Branson, founder of Virgin Group, poses for a photograph on board of his new cruise liner, the Scarlet Lady at Dover Port in Dover

(Reuters) - Billionaire Richard Branson's Virgin Group said on Monday that it may sell up to 25 million shares of space tourism company Virgin Galactic Holdings (NYSE:SPCE) Inc to raise funds amid the COVID-19 pandemic.

The company said it intends to use the proceeds to support its portfolio of global leisure, holiday and travel businesses that have been affected by the impact of the coronavirus.

Shares of Virgin Galactic, which have gained 69% this year, were down 3.1% at $19.54 in afternoon trade.

Based on Friday's closing price, the offering would raise as much as $504.5 million.

The company, which aims to offer the first commercial space flight later this year, said in April it would keep running as a critical infrastructure business during the pandemic.

© Reuters. Richard Branson, founder of Virgin Group, poses for a photograph on board of his new cruise liner, the Scarlet Lady at Dover Port in Dover

Latest comments

He is the modern day P T Barnum.
I know a few Koreans build liquor stores and sell them. Owners lost money but builders are rarely lost any money. Richard is one of those builders.
Virgin Galactic doest have a working space shuttle yet selling billions on wall street via stocks. His airliner doesnt make money. He builds companies and sell them.
A billionaire should never reduce his cash liquidity below 25% unless hes willing to hold his breath while doing it,so to speak.
Sorry to hear it,really !Likely means hes short on cash.Not a good position to be in, in times like this.
poor guy
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