Virgin Galactic shares slip on new share offering, aiming to fly Richard Branson in early 2021

  • Virgin Galactic expects to fly founder Sir Richard Branson in the first quarter of 2021 after two more test spaceflights.
  • The space tourism company delivered an adjusted EBITDA loss of $54 million for the second quarter, as losses held steady from prior quarters.

Virgin Galactic reported second quarter results on Monday and told investors that it expects to fly founder Sir Richard Branson in the first quarter of next year after it concludes development testing.

The space tourism company also plans to raise about $460 million in a sale of about 20.5 million shares of common stock.

Virgin Galactic provided a significant update to its development timeline, saying its next test spaceflight will occur "this fall," with just two test pilots on board. Then the company will fly a second time, with four "mission specialists" inside the spacecraft's cabin. If both test flights succeed, Virgin Galactic expects to fly Branson in early 2021.

The company delivered an adjusted EBITDA loss of $54 million for the quarter, in line with the losses of $53 million and $55 million in the two prior quarters. Virgin Galactic did not record any revenue for the quarter. Notably, analysts surveyed by Refinitiv had only expected the company to report about $900,000 of revenue, as the company has yet to begin its commercial space tourism service.

Shares of Virgin Galactic fell more than 8% in after-hours trading from its close on Monday of $24.02.

Virgin Galactic's stock had risen 7% on Monday after the company announced that it will partner with Rolls-Royce in developing a supersonic aircraft. Virgin Galactic revealed the supersonic vehicle's design after completing a concept review alongside NASA.

The company's business model falls in the realm of luxury experiences, given the high prices of its space tourism offering. The company is in the final stages of developing its reusable spacecraft, which can carry six passengers on a 90-minute trip to the edge of space.

This story is developing. Please check back for updates.

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