Virgin Orbit's near future in "substantial doubt" over cash position - filing

Virgin Orbit Holdings

03/04/2023 23:04

By Joey Roulette
       WASHINGTON, April 3 (Reuters) - Richard Branson's Virgin
Orbit Holdings  VORB.O  in a U.S. regulatory filing on Monday
said there is "substantial doubt" its cash position will allow
it to continue operating for at least the next 12 months.
    Days after announcing the layoff of nearly its entire
workforce, the launch company said it expects to disclose in a
forthcoming filing that its "liquidity condition raises
substantial doubt about the company's ability to continue as a
going concern for at least 12 months" from the expected issuance
date of its annual 10K filing, the company said in a Securities
and Exchange Commission filing.
    Virgin Orbit's statement came in a notice explaining why it
had yet to file its annual 2022 report. It attributed the delay
to "potential fundraising transactions" and limited resources
and staff amid an "operational pause and workforce reduction."
    Struggles to raise funds in recent months and a January
rocket failure increased pressure on the company to find new
funding. The company on March 16 began a furlough of nearly all
its 750 employees as it sought a new investment plan.
    Unable to secure new funds, Virgin Orbit on Thursday moved
to lay off roughly 85% of its workforce, or about 675 employees.
    Virgin Orbit, spun off from Branson's space tourism firm
Virgin Galactic in 2017, went public in 2021 through a
blank-check deal, where it raised $255 million, less than
expected. 
    "As of December 31, 2022, we have not generated positive
cash flows from our operations or generated sufficient revenues
to provide sufficient cash flows to enable us to finance our
operations, and may not be able to raise sufficient capital to
do so," Monday's filing said. 
    It added it expects to report for 2022 roughly $33.1 million
in revenue and a net loss of about $191 million.

 (Reporting by Joey Roulette; Editing by Anna Driver)
 ((Joey.Roulette@thomsonreuters.com; 7034696632;))