Yahoo Finance Virgin Galactic stock sinks as company raises $300M, seeks $400M more
Virgin Galactic (SPCE) stock sank nearly 20% on Friday after the company revealed in a filing it completed a stock offering of $300 million and plans to raise $400 million more in a subsequent offering.
The new raise will be used "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 an SEC filing.
A week prior, Virgin Galactic stock rose more than 40% after the company announced plans to launch its commercial space tourism service later in June. Shares of Virgin Galactic entered Friday's trading session up more than 50% year-to-date.
Virgin Galactic, a space travel company founded by billionaire Sir Richard Branson with ambitions to bring everyday citizens to outer space, went public in October 2019. The company hasn't officially opened its commercial space tourism service and hasn't posted a profitable quarter yet.
In the company's most recent quarterly release on May 9, Virgin Galactic's $0.57 loss per share was wider than the $0.52 loss the Street had been expecting. The company's $392,000 in revenue was well below the Street's estimates for $1.37 million in quarterly revenue.
"The excitement continues to build and we're finally at the cusp of what will be a defining moment for our company: Commercial space line operations," Virgin Galactic Chief Executive Officer Michael Colglazier said during the company's earnings call while teasing out the commercial flights coming in June.
Wall Street has viewed Virgin Galactic's stock as a way to invest in space tourism that's included flights by Jeff Bezos' Blue Origin and Elon Musk's SpaceX.
Josh is a reporter for Yahoo Finance.
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