Richard Branson’s Virgin Galactic Goes Public With Extravagant Promises to Keep

Richard Branson wears the SpaceShipTwo flight suit. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

After 15 years of making extravagant but unkept promises to fly more than 600 “future astronauts” to space, Richard Branson must now please an entirely new group of people who are usually much shorter on patience: shareholders.

Following the completion last week of a merger with Social Capital Hedosophia (SCH), the British billionaire’s Virgin Galactic suborbital “space line” will begin trading under its own name on the New York Stock Exchange (NYSE) on Monday.

Going public now is an unusual move for a space tourism company that hasn’t flown a singlet tourist to space since Branson announced the SpaceShipTwo program in 2004. Some might see it has putting the cart before the horse.

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Virgin Galactic Completes Merger with Social Capital Hedosophia

SpaceShipTwo Unity during third flight test. (Credit: MarsScientific.com & Trumbull Studios)

NEW YORK, October 25, 2019 (Virgin Galactic PR) — Virgin Galactic (“VG”), a vertically integrated aerospace company, and Social Capital Hedosophia (“SCH”), a public investment vehicle, today announced the completion of their previously announced business combination.

The resulting company is named Virgin Galactic Holdings, Inc. (“VGH”) and its common stock, units and warrants are expected to commence trading on the New York Stock Exchange under the new ticker symbol “SPCE”, ”SPCE.U” and “SPCE WS”, respectively, on October 28, 2019. The Company manufactures its space vehicles in Mojave, California, through its aerospace development subsidiary The Spaceship Company, with commercial operations centered at Spaceport America in New Mexico.

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Virgin Galactic Goes Public on Monday

SpaceShipTwo after being released for its final flight. (Credit: Virgin Galactic/NTSB)

On Monday, Virgin Galactic will become the first space tourism company to be publicly traded on a stock exchange — without having flown a single space tourist in the two decades since Richard Branson founded the company.

The move to list on the New York Stock Exchange (NYSE) comes after shareholders of Social Capital Hedosophia (SCH) overwhelmingly approved an $774 million acquisition deal on Wednesday. The proposal received more than 95 percent of the 61.3 million votes cast.

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Virgin Galactic Adds Members to Board of Directors

WhiteKnightTwo and SpaceShipTwo take off at 7:11 a.m. PST from the Mojave Air and Space Port. (Credit: Kenneth Brown)

New York, USA, October 10, 2019 (Virgin Galactic PR) — Social Capital Hedosophia Holdings Corp. (“SCH”) and Virgin Galactic today announced that Wanda Austin, Craig Kreeger and George Mattson have agreed to join the board of directors of Virgin Galactic Holdings, Inc. (“VGH”), the company resulting from the pending business combination transaction involving SCH and Virgin Galactic. The board appointments are contingent on approval by SCH’s shareholders and the completion of the business combination between SCH and Virgin Galactic.

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Social Capital Hedosophia to Vote on Virgin Galactic Merger on Oct. 23

The second SpaceShipTwo is carried aloft by WhiteKnightTwo on its first captive carry flight. (Credit: Virgin Galactic)

NEW YORK, Oct. 10, 2019 (SCH PR) —Social Capital Hedosophia Holdings Corp. (“SCH”) announced today that it will hold its extraordinary general meeting (the “Extraordinary General Meeting”) at 12:30 p.m., Eastern Time, on October 23, 2019, to approve, among other things, the previously announced business combination (the “Business Combination”) with TSC Vehicle Holdings, Inc., Virgin Galactic Vehicle Holdings, Inc. and V4GH, LLC (collectively, “Virgin Galactic” and, together with Vieco USA, Inc. and Vieco 10 Limited, “VG”). The Extraordinary General Meeting is scheduled to be held at The Westin Palo Alto, located at 675 El Camino Real, Palo Alto, CA 94301.

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A Short Review of Virgin Galactic’s Long History

SpaceShipTwo fires its hybrid engine. (Credit: Kenneth Brown)

by Douglas Messier
Managing Editor

Today, Sept. 27, marks the 15th anniversary of Richard Branson announcing the launch of Virgin Galactic Airways. It’s been a long, winding road between that day and today, filled with many broken promises, missed deadlines, fatal accidents and a pair of spaceflights.

This year actually marks a double anniversary: it’s been 20 years since Branson registered the company and began searching for a vehicle the company could use to fly tourists into suborbital space.

Below is a timeline of the important events over that period.

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Spaceport America and Virgin Galactic: The Numbers Never Added Up

Richard Branson and his children hang out with Project Bandaloop dancers during the dedication of the Virgin Galactic Gateway to Space facility. (Credit: Douglas Messier)

Fourteen years ago, Virgin Galactic and New Mexico promised “tens of thousands” of tourists would fly to space from Spaceport America by 2019. Total thus far: 0.

by Douglas Messier
Managing Editor

When they announced in December 2005 that Virgin Galactic would locate its space tourism business in New Mexico, Virgin Founder Richard Branson and Gov. Bill Richardson made a number of eye-popping claims about why taxpayers should back a plan to build the Southwest Regional Spaceport to serve as the space tourism company’s home base:

  • $331 million in total construction revenues in 2007;
  • 2,460 construction-related jobs;
  • $1 billion in total spending, payroll of $300 million and 2,300 jobs by the fifth year of operation; and,
  • $750 million in total revenues and more than 3,500 jobs by 2020.

Virgin Galactic would sign a 20-year lease as anchor tenant and pay fees based on the number of launches it conducted. New Mexico would use the spaceport, Virgin’s presence and the funds generated to develop a large aerospace cluster.

Surprisingly, New Mexico would spend more money, $225 million, to develop a facility now known as Spaceport America than the $108 million that Branson planned to spend on developing a fleet of five SpaceShipTwos and WhiteKnightTwo carrier aircraft.

Among all the big numbers in the announcement, there was a truly astounding one that was deemed so important it was mentioned twice. (Emphasis added)

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Virgin Galactic-Social Capital Hedosophia Deal Goes Further

A view from inside the cockpit. (Credit: Virgin Galactic)

At a meeting on Monday, shareholders of Social Capital Hedosophia (SCH) gave approval to the public company to move forward with an $808 million merger deal with Sir Richard Branson’s Virgin Galactic.

“Holders of 66,333,089 of the Company’s ordinary shares, which represents 76.9% of the ordinary shares outstanding and entitled to vote as of the record date of August 8, 2019, were represented in person or by proxy,” Social Capital said in a document filed with the Securities and Exchange Commission (SEC).

The shareholders approved two resolutions. The first extends the date for completing the merger from Sept. 18 to Dec. 18, 2019.

The second resolution “extends the date on which the Trustee must liquidate the trust account established in connection with the Company’s initial public offering” if the SCH and Virgin Galactic do not complete the merger by Dec. 18.

Under terms of the deal, SCH would own up to approximately 49% of the combined space tourism company, which would be publicly traded. SCH founder Chamath Palihapitiya would become chairman of the board.

For more details about the deal, read the announcement here.

A Closer Look at the Virgin Galactic-Social Capital Merger Deal

Virgin Galactic SpaceShipTwo’s first flight above 50 miles on Dec. 13, 2018. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

As shareholders in Chamath Palihapitiya’s Social Capital Hedosophia prepare to vote on an $808 million merger with Richard Branson’s Virgin Galactic on Monday, it seemed like a good time to take a closer look at it.

Fortunately, Virgin and Social Capital have filed a new 8K form with the Securities and Exchange Commission (SEC) that includes an updated PowerPoint document titled Analyst Day Presentation that is dated Sept. 5.

The presentation is 100 slides long. I’ve gone through and excerpted the highlights so that you don’t have to. But, if you want to read the whole thing, visit this page and scroll down.

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It’s Showtime for Virgin Galactic’s Latest Cash Infusion Plan

Richard Branson with the pilots of SpaceShipTwo. (Credit: Virgin Galactic)

CityAM reports that Sir Richard Branson’s $808 million deal to merge Virgin Galactic with venture capitalist Chamath Palihapitiya’s Silicon Valley investment vehicle faces a crucial vote of confidence on Monday.

Would-be shareholders will vote on whether to back the entry via investment vehicle Social Capital Hedosophia (SCH), or whether to withdraw their cash entirely.

SCH was formed in 2017 and already trades on the New York Stock Exchange. It plans to merge with Virgin Galactic, bringing the space travel venture onto the market in an unconventional move which would avoid the traditional risks of an Initial Public Offering.

The deadline for this is fast approaching, and looks set to be missed, however, which would see SCH go into liquidation.

In that case, investors get back $712m (£578m) next week. They will vote tomorrow on whether to allow this to happen or whether to postpone the deadline for a merger until December and subsequently keep their cash in the Virgin Galactic float.

Virgin Galactic and Social Capital Hedosophia announced the merger, actually a reverse acquisition, two months ago. The deal would see Palihapitiya become chairman of the company and Adam Bain join the board. Bain previously served as chief operating officer of Twitter.

Virgin Galactic is currently spending about $16 million per month ($190 million annually),. according to a presentation filed with the Securities and Exchange Commission (SEC).

Virgin Galactic previously received an investment of $390 million from an Abu Dhabi’s sovereign wealth fund. Branson broke off a MOU with Saudi Arabia for a $1 billion investment with an option for $480 million more in Virgin Galactic, Virgin Orbit and The Spaceship Company.

It’s Show-and-Tell Time Again for Virgin Galactic in New Mexico

by Douglas Messier
Managing Editor

Nearly eight years after Richard Branson dedicated the Virgin Galactic Gateway to Space at Spaceport America before a crowd that included Titanic star Kate Winslet and British royal Princess Beatrice, his suborbital space tourism company is moving its WhiteKnightTwo carrier aircraft there.

When Branson dedicated the gateway facility in October 2011, the giant building was largely empty. Virgin Galactic says it is now ready to show off what customers will experience inside the structure.

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