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Virgin Galactic Holdings (NYSE: SPCE) has announced an ‘at the market’ equity program to sell up to $300 million worth of common stock shares through Jefferies The company plans to use the proceeds to accelerate the development of its next-generation spaceflight fleet, including an additional mothership and third and fourth Delta Class spaceships. The funds may also support general corporate purposes, working capital, and administrative matters. Sales will be conducted at prevailing market prices through various methods, including ordinary brokers’ transactions and national securities exchanges.
Virgin Galactic Holdings (NYSE: SPCE) ha annunciato un programma di equity ‘at the market’ per vendere fino a 300 milioni di dollari di azioni ordinarie tramite Jefferies. L’azienda prevede di utilizzare i proventi per accelerare lo sviluppo della sua flotta spaziale di nuova generazione, che include un ulteriore nave madre e le terze e quarte navette spaziali di classe Delta. I fondi potrebbero anche sostenere scopi aziendali generali, capitale di lavoro e questioni amministrative. Le vendite saranno effettuate ai prezzi di mercato prevalenti attraverso vari metodi, inclusi i normali transazioni di broker e le borse nazionali di titoli.
Virgin Galactic Holdings (NYSE: SPCE) ha anunciado un programa de capital ‘at the market’ para vender hasta 300 millones de dólares en acciones ordinarias a través de Jefferies. La compañía planea utilizar los ingresos para acelerar el desarrollo de su flota espacial de nueva generación, que incluye una nave nodriza adicional y las tercera y cuarta naves espaciales de Clase Delta. Los fondos también podrían respaldar propósitos corporativos generales, capital de trabajo y asuntos administrativos. Las ventas se llevarán a cabo a los precios de mercado vigentes a través de varios métodos, incluidos transacciones ordinarias de corredores y bolsas nacionales de valores.
버진 갤럭틱 홀딩스 (NYSE: SPCE)는 3억 달러 상당의 보통주를 판매하기 위한 ‘시장 판매’ 자본 프로그램을 발표했습니다. 이 회사는 그 수익금을 사용하여 차세대 우주 비행 함대 개발을 가속화할 계획으로, 추가적인 모선 및 세 번째와 네 번째 델타 클래스 우주선이 포함됩니다. 자금은 일반 기업 용도, 운전 자본 및 관리 업무 지원에도 사용할 수 있습니다. 판매는 보통 중개인 거래 및 국가 증권 거래소를 포함한 다양한 방법을 통해 시장 가격에 따라 진행됩니다.
Virgin Galactic Holdings (NYSE: SPCE) a annoncé un programme de capital ‘au marché’ pour vendre jusqu’à 300 millions de dollars d’actions ordinaires par l’intermédiaire de Jefferies. L’entreprise prévoit d’utiliser les revenus pour accélérer le développement de sa flotte spatiale de nouvelle génération, y compris un vaisseau-mère supplémentaire et les troisième et quatrième vaisseaux spatiaux de classe Delta. Les fonds pourraient également soutenir des usages généraux de l’entreprise, le capital de fonctionnement et les questions administratives. Les ventes se feront aux prix du marché en vigueur par divers moyens, y compris les transactions ordinaires des courtiers et les bourses nationales de valeurs mobilières.
Virgin Galactic Holdings (NYSE: SPCE) hat ein ‘at the market’ Eigenkapitalprogramm angekündigt, um bis zu 300 Millionen USD an Stammaktien über Jefferies zu verkaufen. Das Unternehmen plant, die Einnahmen zu nutzen, um die Entwicklung seiner nächsten Generation von Raumfahrtflotten zu beschleunigen, einschließlich eines zusätzlichen Mutterschiffs und der dritten sowie vierten Raumfähren der Delta-Klasse. Die Mittel könnten auch allgemeine Unternehmenszwecke, Betriebskapital und Verwaltungsangelegenheiten unterstützen. Der Verkauf erfolgt zu den aktuellen Marktpreisen durch verschiedene Methoden, einschließlich gewöhnlicher Broker-Transaktionen und nationalen Wertpapierbörsen.
Positive
- Securing up to $300 million in additional capital for fleet expansion
- Investment in production capacity with additional mothership and Delta Class spaceships
Negative
- Potential shareholder dilution through new stock issuance
- Variable pricing structure may result in below-market sales
Insights
This $300 million ATM equity offering signals significant dilution risk for existing shareholders, considering the company’s current market cap of just $202.8 million. The potential share issuance could more than double the float, severely impacting stock value. While the capital raise aims to fund fleet expansion and development, including an additional mothership and Delta Class spaceships, the company’s cash burn rate and path to profitability remain concerning.
The flexible nature of the ATM program allows Virgin Galactic to sell shares opportunistically, but the timing and execution risk could lead to substantial pressure on the stock price. The variable pricing mechanism (“at prevailing market prices”) adds uncertainty for investors. This financing move suggests internal concerns about cash reserves and operational sustainability, particularly given the capital-intensive nature of spacecraft development.
Company Intends to Use Any Proceeds to Further Accelerate the Expansion of Its Next Generation Spaceflight Fleet, Including the Production of an Additional Mothership
ORANGE COUNTY, Calif.–(BUSINESS WIRE)– Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”) today announced that it has entered into a sales agreement under which it may offer and sell shares of its common stock (the “Shares”) having an aggregate offering price of up to $300 million from time to time pursuant to an “at the market” program (the “ATM Program”).
The Company intends to use the net proceeds from any sales of its common stock under the ATM Program to further accelerate the development and production of its next-generation spaceflight fleet, including an additional mothership and third and fourth Delta Class spaceships. The Company may also use a portion of any net proceeds for general corporate purposes, including working capital and general and administrative matters.
Any sales under the ATM Program will be through Jefferies LLC, as sales agent, by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions, to or through a market maker, directly on or through any national securities exchange or facility thereof, a trading facility of a national securities association, an alternative trading system or any other market venue, in the over-the-counter market, in privately negotiated transactions or through a combination of any such methods. Sales may be made at prevailing market prices at the time of the sale, at prices related to prevailing market prices or at negotiated prices and, as a result, sales prices may vary.
The ATM Program will be made pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-272826) filed with the SEC on June 22, 2023. Prospective investors should read the prospectus contained in the registration statement and the prospectus supplement relating to the ATM Program (including the documents incorporated by reference therein) for more complete information about the Company and the ATM Program, including the risks associated with investing. Copies of the prospectus supplement and related prospectus may be obtained from Jefferies LLC at Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at (877) 821-7388 or by email at Prospectus_Department@Jefferies.com. You may also obtain these documents free of charge when they are available by visiting EDGAR on the SEC’s website at www.sec.gov.
There can be no assurance that the Company will sell any shares under the ATM Program. The timing of any sales and the number of shares sold, if any, will depend on a variety of factors to be determined by the Company.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer, solicitation or sale will be made only by means of the prospectus supplement and the accompanying prospectus.
About Virgin Galactic
Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for private individuals and researchers with its advanced air and space vehicles. Scale and profitability are driven by next generation vehicles capable of bringing humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical fact, should be considered forward-looking statements, including without limitation statements regarding the ATM Program and the use of proceeds of sales, if any, under the ATM Program. These statements are based on management’s current assumptions, are neither promises nor guarantees, and involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading “Risk Factors” in the prospectus supplement for the ATM Program and the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and subsequently filed reports on Form 10-Q and 8-K, as such factors may be updated from time to time in our other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106680459/en/
For media inquiries:
Aleanna Crane – Vice President, Communications
575.800.4422
For investor inquiries:
Eric Cerny – Vice President, Investor Relations
949.774.7637
Source: Virgin Galactic Holdings, Inc.
FAQ
How much money is Virgin Galactic (SPCE) raising through its ATM program?
Virgin Galactic is offering to sell shares with an aggregate offering price of up to $300 million through its ATM program.
What will Virgin Galactic (SPCE) use the ATM program proceeds for?
The proceeds will be used to accelerate development of their next-generation spaceflight fleet, including an additional mothership and third and fourth Delta Class spaceships, plus general corporate purposes.
Who is managing Virgin Galactic’s (SPCE) ATM stock offering?
Jefferies is acting as the sales agent for Virgin Galactic’s ATM program.
How will Virgin Galactic (SPCE) price the shares in the ATM program?
Shares will be sold at prevailing market prices at the time of sale, at prices related to prevailing market prices, or at negotiated prices.
