Virgin Galactic Holdings Inc (NYSE:SPCE) shares fell sharply in Friday pre-market trading in the US after it revealed plans to sell shares worth up to US$400mln on top of $300mln sold since March 2023 as it prepares for commercial operations to take off.
In a filing to the US Securities and Exchange Commission, the company said it has entered a distribution agency agreement with Credit Suisse Securities, Morgan Stanley and Goldman Sachs to act as agents for the capital raise.
“The company intends to use any net cash proceeds it receives … for development of its spaceship fleet and infrastructure to scale its commercial operations, and for general corporate purposes, including working capital and general and administrative matters,” according to the filing.
Virgin Galactic said the new distribution agency deal follows the completion of sales worth US$164.4mln and US$135.4mln under prior agreements.
The company’s shares have rallied since it set a date for its first commercial space tourism flight for the last week of June.
They were 18% down at US$4.37 ahead of the US market opening.
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