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Virgin Galactic to Sell 20 Million Shares

Virgin Galactic Holdings Inc. has announced plans to sell more than 20 million fresh stock shares to boost its cash position. Existing shares dropped nearly 14 percent on Tuesday. The Mojave space tourism company reported no revenue for the quarter ended June 30, and a loss of $62.5 million, or -30 cents a share. That’s compared to a loss of $44 million, or -23 cents a share, on revenue of $638,000 in the same quarter last year. “During the period, our operations were impacted by the COVID-19 pandemic, despite our efforts to minimize disruption,” Chief Space Officer George Whitesides said in a statement. Virgin announced Monday it would offer roughly 20.5 million shares for an expected take of $460 million. In a statement, the company said it would use the cash injection for “general corporate purposes, including working capital, general and administrative matters and capital expenditures.” The company is preparing to begin shuttling tourists to space as soon as next year. It unveiled the interior design of its commercial VSS Unity subliner, which will feature reclining passenger seats made by Under Armour and rows of circular viewports. Virgin said it hopes to fly Chief Executive Richard Branson into space in the first quarter of 2021. Booking a trip to space will cost patrons $250,000. Virgin says it has received deposits from about 600 customers. Shares of Virgin Galactic tanked Tuesday, closing down $3.29, or nearly 14 percent, at $20.72 on the New York Stock Exchange. The major exchanges closed up less than 1 percent.

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