Virgin Galactic, already involved in a legal spat with Boeing over an alleged misappropriation and withholding of certain proprietary IP and trade secrets, has scheduled its June 12th Annual meeting to include a proposal to create a reverse stock split for the company.

The intention is for Virgin Galactic to adjust the company’s shares in a 1 for 2, or 1 for 20 “as determined by the Board of Directors”. This would have the effect of converting between 2 and 20 existing shares into one new share and thus avoiding Virgin Galactic’s shares falling below the crucial $1 value. A reverse stock split would increase the quoted value of each share to (currently) around $1.60 (on a one for two decision) or around $16 (on a one for 20).

Last week, for example, Virgin Galactic’s shares were trading at around 79-97 cents per share and below the threshold for listing on the New York Stock Exchange. On April 19th its share price crashed 16.5 per cent to just 79 cents on the news of the stock adjustment.

Virgin Galactic went public in 2019 and at one time its stock was worth $54 per share.

Virgin’s last tourism Flight 06 happened on January 26th and its planned ‘next generation’ Delta Class test flight will not happen before 2025. The strategy then is to fly the new Delta Class vehicle once or twice a week once testing is over.

Other posts by Chris Forrester:

1. Scotland’s rocket launch gets closer
2. SpaceX tops 6,300 Starlinks; IPO rumours
3. Full details of SES, Intelsat deal
4. Ariane 6 launch campaign underway
5. Thuraya-3 suffers major problem
6. AST SpaceMobile hit by Class Action
7. Optimism under threat at SES
8. Rivada visits Terran Orbital’s manufacturing HQ
9. Avanti wins spectrum debt obligation case

Categories: Blogs, Business, Inside Satellite

Tags: NYSE, virgin, Virgin Galactic