Virgin Orbit sinks to new depths as furlough to extend, funding talks continue

Virgin Orbit Holdings

28/03/2023 17:43

(Updates, including stock activity)
    ** Shares of satellite launch company Virgin Orbit Holdings
 VORB.O  sink ~31% to fresh record low 37 cents on Tues
    ** Billionaire Richard Branson's cash-strapped Virgin Orbit
is extending an unpaid furlough for most of its employees as
talks seeking new funding continue, CEO Dan Hart said in an
email to employees on Mon
    ** Reuters reported last week Texas-based Matthew Brown was
in talks to invest $200 mln in VORB, but those talks have
collapsed, two sources told Reuters on Mon
    ** "Our investment discussions have been very dynamic over
the past few days, they are ongoing, and not yet at a stage
where we can provide a fulsome update" - CEO
    ** VORB said it reached an agreement last week with investor
YA II PN, Ltd. to lower floor price of its stock from $1.00 to
$0.746, per SEC filing
    ** As result of adjusted floor price, VORB may issue ~57.6
mln shares upon conversion of the 2022 convertible debenture,
and said on Mar 27 it entered separate purchase agreement with
the investor for $1 mln convertible debenture, per the filing
    ** VORB's shares have shed 73% this month, including move on
the session

 (Reporting by Chavi Mehta and Lance Tupper
Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((Chavi.Mehta@thomsonreuters.com
))