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.

First Quarter Commercial Space Investment Reached Nearly $1 Billion

SpaceX Falcon 9 lifts off with a Dragon resupply ship on April 2, 2018. (Credit: NASA)

by Douglas Messier
Managing Editor

SpaceX received $500 million of the nearly $1 billion in investment raised by commercial space companies during the first quarter of 2018, according to the Space Investment Quarterly report from Space Angels.

“SpaceX shows no signs of slowing down—after the inaugural flight of the Falcon Heavy, the company secured $500 million from Fidelity Investments to drive development of their satellite communications network, Starlink,” the report added.

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