Virgin Orbit Holdings Inc's (NASDAQ:VORB) 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.