Virgin falls out of ‘Orbit’
Billionaire Richard Branson’s Virgin Orbit said Thursday it was in talks for funding after a cash crunch forced the satellite-launch firm to pause operations.
The temporary halt is expected to continue until Tuesday, Virgin Orbit said in a regulatory filing.
Virgin Orbit has furloughed nearly all its employees, a move aimed at helping it buy more time to finalize a new investment plan, Reuters reported Wednesday, citing a source.
Shares of Virgin Orbit fell 30% to 71 cents Thursday, pulling the company’s market capitalization down to about $230 million. That’s a far cry from the more than $3 billion valuation it had commanded in 2021 after going public.
The steep drop reflects waning investor interest in space startups such as Virgin Orbit and Rocket Lab USA as they struggle with rocket launches in a highly competitive market.