Shares of Virgin Galactic lost 18.92% on the NASDAQ on Thursday and fell to $10.03 each after the space tourism company announced plans to raise up to $500 million in debt.
The company intends to raise $425 million from the sale of 2027 senior convertible bonds through a private offering, and an additional $75 million option is also expected to be granted to buyers.
Sir Richard Branson’s Virgin Galactic went public through a merger with Chamath Palihapitiya’s Special Purpose Acquisition Company, or SPAC, in October 2019.
At the time, Virgin Galactic said it would start taking customers into space in 2020. In fact, Branson himself and three other company employees made a headline-grabbing test spaceflight in July 2021.
Since then, delays in testing and development of Virgin Atlantic’s spacecraft have steadily delayed commercial service until the end of this year at the earliest.