Virgin Orbit Holdings Inc.’s stock plunged Tuesday as the company’s search for new funding continues
Virgin Orbit Holdings Inc.’s stock plunged Tuesday as the company’s search for new funding continues.
The stock ended Monday’s session down 21.3%, almost 93% off its 52-week high, FactSet data show. Virgin Orbit’s VORB, -28.42% stock was down 28.5% Tuesday, outpacing the S&P 500 Index’s SPX, -0.16% decline of 0.1%.
The satellite-launch company’s stock plunged more than 30% earlier this month after it announced an operational pause “in order to conserve capital while the company conducts discussions with potential funding sources and explores strategic opportunities.” Last week the stock snapped a six-day losing streak when it announced plans to restart operations.
Reuters reported Monday that the company will extend an unpaid furlough for most of its employees, citing an email sent by CEO Dan Hart to employees, as talks to find new funding continue. Last week Reuters reported that venture capital investor Matthew Brown was close to making a $200 million investment in Virgin Orbit via a capital share placement. However, those talks have collapsed, Reuters reported Monday, citing two people familiar with the discussions, who asked not to be identified.
MarketWatch has reached out to Virgin Orbit and Matthew Brown Companies with a request for comment on this article.
Founded by Richard Branson in 2017, Virgin Orbit began commercial service in 2021. The company is based in Long Beach, Calif.
In January, Virgin Orbit attempted to make history with the first orbital space launch from British soil, but its rocket carrying nine satellites suffered an “anomaly” and failed to reach orbit.
The mission, dubbed Start Me Up, was the fifth consecutive Virgin Orbit launch to carry payloads for private companies and government agencies. The company has opened an investigation into the failed mission.
Since starting operations in 2021, Virgin Orbit has launched more than 30 government and private-sector satellites.