Virgin Orbit shares slip as satellite firm announces 'operational pause'
Investing.com | Author Scott Kanowsky
Published Mar 16, 2023 08:29AM ET
By Scott Kanowsky
Investing.com -- Shares in Virgin Orbit Holdings Inc (NASDAQ:VORB) shed nearly 40% of their value in premarket trading on Thursday after the U.S.-based satellite company announced that will pause all operations while it seeks fresh funding.
The Nasdaq-listed company, which was founded by British billionaire businessman Richard Branson in 2017, did not say how long the halt will go on for. It also did not confirm earlier media reports that it would be temporarily placing all but a handful of workers on unpaid furlough.
“Virgin Orbit is initiating a company-wide operational pause, effective March 16, 2023, and anticipates providing an update on go-forward operations in the coming weeks,” the company said in a statement.
According to Reuters, Chief Executive Dan Hart told staff at a meeting on Wednesday that the furloughs would give the business more time to finalize a new investment plan. The firm previously secured $10 million in funds last month.
The decision comes after Virgin Orbit failed in January in its attempt to launch the first satellites into orbit from Europe. The firm said it has nearly completed its investigation into the mission.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.