Virgin Galactic Holdings, Inc. SPCE shares are trading lower on Friday after the company announced another dilutive stock offering of $400 million to raise capital.
The Details:
Virgin Galactic filed a prospectus with the SEC for a common stock offering, allowing the company to sell $400 million worth of shares over time dilutive to its current stock. The company expects to use the proceeds for the development of its spaceship fleet, infrastructure to scale its commercial operations and other general corporate purposes.
The new offering comes as Virgin Galactic announced that it has completed its previous $300 million at-the-market offering.
Virgin Galactic shares had been on an upward trend after the company announced June dates for its first commercial space flights and monthly commercial space flights continuing thereafter.
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SPCE Price Action: According to Benzinga Pro, Virgin Galactic shares are trading 19% lower at $4.30 at the time of publication.
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