Virgin Galactic plans to sell more stock as cash reserves dwindle

Virgin Galactic Holdings Inc.
is seeking to sell up to $300 million worth of shares in an “at the market” offering, as the space-tourism company’s cash reserves dwindle and the launch of its first commercial space is pushed back. In a filing with the Securities and Exchange Commission on Thursday, Virgin Galactic revealed that it had entered into a distribution-agency agreement with Credit Suisse, Morgan Stanley and Goldman Sachs to raise money “for general corporate purposes, including working capital, general and administrative matters and development of its spaceship fleet and other infrastructure to scale its commercial operations.” In an earnings report earlier Thursday afternoon, Virgin Galactic delayed its initial launch for the third time in less than a year, and revealed cash and cash equivalents of roughly $370 million as of the end of the second quarter. Executives guided for cash burn of $110 million to $120 million in the third quarter. Virgin Galactic shares were down more than 10% in after-hours trading.

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