A class action lawsuit was filed in New York on Dec. 7 alleging securities fraud by Virgin Galactic, which went public on the New York Stock Exchange (NYSE) in October 2019 after merging with Chamath Palihapitiya’s Social Capital Hedosophia (SCH).
Named in the lawsuit are Virgin Galactic Holdings, CEO Michael Colglazier, former CEO George Whitesides, former current chief financial officer Doug Ahrens, and former chief financial officer Jon Compagna.
The lawsuit was filed amid years-long delays in the start of commercial human suborbital flights that have caused a sharp decline in the value of the stock. Virgin Galactic began trading on the New York Stock Exchange at an opening price of $12.34 on Oct. 28, 2019. The stock is now trading at $14.46 having previously soared to a high of $62.80.
Boom Supersonic’s recent rollout of its XB-1 supersonic demonstrator aircraft marked a milestone in an accelerating race to revive an era of civilian supersonic travel that ended when the Concorde jetliner was retired in 2003.
XB-1, aka Baby Boom, is set to begin flight tests next year from the Mojave Air and Space Port in California. The Mach 2.2 (2,717 km/h, 1,688 mph) vehicle is the precursor to Boom’s 55-seat Overture airliner, which is scheduled to begin carrying passengers in 2029.
LAS CRUCES, N.M. 3 August 2020 (Virgin Galactic PR) – Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”), a vertically integrated aerospace and space travel company, which includes its manufacturer of advanced air and space vehicles, The Spaceship Company (“TSC”), announced today the first stage design scope for the build of its high speed aircraft design, and the signing of a non-binding Memorandum of Understanding (MOU) with Rolls-Royce to collaborate in designing and developing engine propulsion technology for high speed commercial aircraft.
For nearly 16 years, Richard Branson’s obsession with space travel has been massive money pit for the billionaire’s Virgin Group. Branson’s conglomerate has poured more than $1 billion into Virgin Galactic, Virgin Orbit and The Spaceship Company without launching a single tourist or satellite into space while generating minuscule revenues and not a single penny of profit.
And yet, by the strange workings of modern finances, this money losing effort will be helping to prop up the Virgin Group, which has been laid low financially by the global COVID-19 pandemic.
MOJAVE, Calif., (Virgin Galactic PR) — Virgin Galactic Holdings, Inc. (NYSE:SPCE) (“Virgin Galactic” or “the Company”) and its wholly owned subsidiary, The Spaceship Company (“TSC”), announced today the signing of a Space Act Agreement with NASA to facilitate the development of high speed technologies.
The Space Act Agreement (“SAA”), is set to enable and foster collaboration between NASA, Virgin Galactic and The Spaceship Company in order to advance the United States’ efforts to produce technically feasible, high Mach vehicles for potential civil applications.
During the current global crisis, we believe that the space industry has a responsibility to share expertise, knowledge, resources, and ingenuity to aid in the fight against COVID-19. That’s why, today, we are proud to share that Virgin Galactic is meeting this responsibility head-on through a Space Act Agreement with NASA.
WASHINGTON (NASA PR) — NASA has joined the fight against coronavirus (COVID-19) with efforts underway across the country to augment the national response, a few of which were highlighted in a media briefing today.
EDWARDS, Calif. (NASA PR) — NASA has joined forces with a task force in Antelope Valley, in northern Los Angeles County, California, to build medical devices to help patients with coronavirus (COVID-19).
NASA’s Armstrong Flight Research Center partnered with Antelope Valley Hospital, the City of Lancaster, Virgin Galactic, The Spaceship Company (TSC), and Antelope Valley College to come up with innovative ideas to solve possible shortages of critical medical equipment.
Supporting our Communities: Our work with the Antelope Valley COVID-19 Task Force
George Whitesides CEO Virgin Galactic and The Spaceship Company
As we all continue to feel the direct impact of COVID-19 in our day-to-day lives, I’ve been inspired by the teamwork shown in the Antelope Valley (AV) of California to respond to the challenge of COVID-19. Now more than ever, it is crucial that we share knowledge, skills and collaborate.
Message from George Whitesides Virgin Galactic CEO
All over the globe, we are seeing and feeling the impact of the COVID-19 pandemic. This is one of the most significant crises we have seen in our lifetimes. Whether it is the brave doctors and nurses working around the clock to help patients, children helping their elderly parents stay safe and fed, or parents and teachers keeping their kids educated while schools are physically closed – we are all in this together and we have a responsibility to help care for one another.
With the impact of COVID-19 mounting every day, our team has worked hard to help tackle this crisis, with an initial focus on the communities we work in. I am proud of the commitment and initiative of our people at Virgin Galactic, The Spaceship Company, and Virgin Group in helping to support relief efforts. Led by our in-house flight doctors, our COVID-19 team has been working closely with local hospitals, commercial suppliers, and government authorities to provide help where it is needed most.
MOJAVE, Calif. (Virgin Galactic PR) — The Spaceship Company (TSC), Virgin Galactic’s space-system manufacturing organization, has completed the systems install and main structure for the wing of the next spaceship in Virgin Galactic’s fleet. The completion of this significant assembly means that the team can begin preparing for the mate of the spaceship’s fuselage to the new wing and moves it closer to beginning its flight test program.
A Virgin Galactic spokeswoman tells me that SpaceShipTwo VSSUnity remains in Mojave as its passenger cabin is fitted out for commercial flights.
The spacecraft is set to join WhiteKnightTwo VMS Eve at Spaceport America in New Mexico later this year to complete a series of flights that began in Mojave. Commercial suborbital flights are set to begin from there in 2020.
The company is planning an event on Thursday, Aug. 15, in which they will unveil the inside of the Virgin Galactic Gateway to Space in New Mexico.
Virgin Galactic’s customer backlog would singlehandedly double the total number of humans to have ever gone to space
Virgin Galactic has developed a set of unique technologies designed to enable a safe and familiar flying experience for customers to go into space and become officially designated astronauts
Virgin Galactic’s technologies have created the first vehicle built for commercial service to put humans into space
Virgin Galactic already has customer reservations from more than 600 people in 60 countries representing approximately $80 million in total collected deposits and $120 million of potential revenue
Virgin Galactic has already been granted its FAA commercial space launch license, and the New Mexico Spaceport has also received its Spaceport license
Pro forma enterprise value of the merger is $1.5 billion and represents:
1.5x invested capital ($1 billion+ of capital invested to date)
2.5x estimated revenue for 2023
5.5x estimated EBITDA for 2023
Social Capital Hedosophia Founder and CEO, Chamath Palihapitiya, will invest an additional $100 million in the transaction and will become Chairman of the combined entity
NEW YORK, July 9, 2019 (Virgin Galactic/Social Capital Hedosophia) — VIRGIN GALACTIC (“VG”) and SOCIAL CAPITAL HEDOSOPHIA (“SCH”), a public investment vehicle sponsored by Social Capital and Hedosophia, announced that the boards of directors of each company have approved a definitive agreement under which VG and SCH will merge, with the current shareholders of SCH expected to own up to approximately 49% of the combined company. Upon closing of the transaction, which is expected in the second half of 2019, VG will be introduced as the first and only publicly traded commercial human spaceflight company.
As we previously reported, Stratolaunch is up for sale. Paul Allen’s sister Jody Allen, the executor of her brother’s estate, has no interest in continuing the development of the giant airplane, which is designed to air launch rockets.
CNBC reports on the eye popping price tag:
Holding company Vulcan is seeking to sell Stratolaunch for $400 million, people familiar with the matter told CNBC. Vulcan is the investment conglomerate of late billionaire Paul Allen, a Microsoft co-founder. Allen died last October following complications of non-Hodgkin’s lymphoma.
The hefty price tag includes ownership of the airplane as well as the intellectual property and facilities.
Stratolaunch is the world’s largest airplane by wingspan, which stretches 385 feet — longer than an American football field. The plane is powered by six jet engines salvaged from Boeing 747 aircraft.
Allen’s vision of a massive plane that can launch rockets from the air was at least partially fulfilled in April, when Stratolaunch flew for the first time after about eight years in development. Based at the Mojave Air and Space Port in California, the giant airplane flew for more than two hours before landing after what was deemed a successful first flight.