Virgin Galactic shares plan to sell $ 500 million worth of shares in Business and Economic News

Virgin Galactic asked for the sale of $ 500 million worth of shares to founder Richard Branson on Sunday after a successful flight into suborbital space.

Virgin Galactic Holdings Inc. the company was asked to sell $ 500 million worth of shares after a flight through rocket by founder Richard Branson, which earned Wall Street praise “as a marketing coup.”

The success of the hour-long mission 50 miles (more than 80 miles) from Earth prompted Virgin Galactic to plan to start offering tourist trips next year. The shares fell the most in almost seven months after the potential sale was announced on Monday, which suggested the company needed more commercial funds while preparing for its commercial debut.

“Welcome to the dawn of a new space age,” Branson told Sunday guests at the Spaceport America complex near Truth or Conclusions (New Mexico).

Branson’s achievement for Virgin Galactic is a “massive marketing blow,” which will be difficult for the general public to ignore, said Genuity analyst Ken Herbert Canaccord in a research note. “The challenge now will be for the company to maintain momentum and implement a flight plan in 2022 to demonstrate a repeatable and increasing commercial launch cadence.”

Virgin Galactic was up 17% and $ 40.69 when it closed in New York, the biggest drop it has had since Dec. 14. The volatile shares seen in recent weeks have doubled this year until July 9, when the company regained its test flight program. track.

Virgin Galactic plans to start work through a portfolio of about 600 confirmed customers in early 2022. The company has said it will resume ticket sales after summer test flights, and executives say fares will be higher than the initial price of $ 250,000 per seat.

The former president of Virgin Galactic, who helped create Will Whitehorn, suggested that a price of $ 300,000 should be raised.

“When it works now, I think they can sell it at a premium,” he said.

Blue Origin

Suborbital travel will begin a space month for the future of space tourism. Branson demonstrates Virgin Galactic capabilities Jeff Bezos founder of Amazon.com Inc. Jeff Bezos plans to fly over the rocket made by Blue Origin, his space project, nine days earlier. Both companies anticipate a short weightless period and an unforgettable view of Earth and sky with businesses aimed at wealthy tourists who are willing to pay the most dollars.

Virgin Galactic’s test flight proved that these trips – which once became things of science fiction – are becoming more and more realistic.

While most are only available to a few super-rich customers, they would add a new dimension to the growing space industry in the private sector with plans to travel to the International Space Station and new human positions.

Branson and his crew members experienced a few minutes of low weight when Unity reached its peak.

“So I looked out the window and the view is wonderful,” Colin Bennett said after operations engineer. “It’s very Zen; it’s very quiet up there, too. “

Branson, who founded Virgin Galactic in 2004, said the memories of seeing Earth from space will stay with him.

“I will never be able to do justice,” he said. “It can’t be more beautiful.”

(Updates the shares in the fifth paragraph)

–With the help of Blaise Robinson, Ksenia Galouchko, Christopher Jasper, Esha Dey and Tony Robinson.