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erienewsnow.com 13 Jan, 2022 20:00 am

Virgin Galactic shares tumble as company says it's raising $425 million in debt - Erie News Now

Virgin Galactic shares tumble as company says it's raising $425 million in debt - Erie News Now
By Jackie Wattles, CNN Business

News Virgin Galactic shares tumble as company says it's raising $425 million in debt Thursday, January 13th 2022, 11:44 AM EST Updated: Thursday, January 13th 2022, 12:59 PM EST Patrick T.Fallon/AFP/Getty Images By Jackie Wattles, CNN Business Shares of Virgin Galactic — the space tourism company that carried its billionaire founder, Richard Branson, to the edge of space last summer — took a major price hit on Thursday after the company announced it's raising as much as half a billion dollars in debt.In a statement, Virgin Galactic said it plans to "use the net proceeds from the offering to fund working capital, general and administrative matters and capital expenditures to accelerate the development of its spacecraft fleet in order to facilitate high-volume commercial service.Ever since Virgin Galactic garnered international attention by launching Branson to space in July 2021, the company has faced significant delays.

The Federal Aviation Administration grounded all flights pending a review, which concluded in September and gave Virgin Galactic the all-clear.At the time Virgin Galactic went public in 2019, it had been touting plans to start commercial service in 2020.

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