Richard Branson to sell $25 Million worth of Virgin Galactic shares amid virus outbreak
Virgin Group’s founder Richard Branson stated on Monday that it would sell $25 Million worth of Virgin Galactic shares to raise funds for the space tourism company as the pandemic threatens to cripple his business empire.
“Virgin intends to use any proceeds to support its portfolio of global leisure, holiday and travel businesses that have been affected by the unprecedented impact of Covid-19,” the company stated.
A drop in demand has struck Virgin Galactic Holdings Ltd. due to the virus outbreak.
Virgin Galactic’s shares declined by 3.1% at $19.54 in afternoon trade, but have raised 69% in the year to date.
The company’s offering would gain as much as $504.5 Million based on Friday’s closing price.
Virgin Galactic continues to operate as a critical infrastructure business amid the pandemic and aims to run the first commercial space flight in 2020.