24.6 C
Friday, June 9, 2023

However, Elon Musk will have competition in orbit. Branson back in the game

Must read

“Space Girl” will return to the game. Virgin Orbit had to find an investor. The company will most likely be back in the race with Elon Musk.

The problems of Sir Richard Branson and his Virgin Orbit seem to be over. According to Reuters, the British billionaire has found a new investor. However, Elon Musk will have competition.

Virgin Orbit has suspended operations. Run out of funds

On March 16, the world was informed that Virgin Orbit, the subsidiary of Richard Branson’s space business that was supposed to send satellites into Earth’s orbit, had suspended its operations even before it made its first launch. After a failed attempt in January of this year, the company ran out of funds.

The company’s management decided to suspend operations and send all employees on vacation. In the message, they were told that this cost reduction would buy time to find willing investors who would recapitalize the company. During the meeting, which took place on March 15, employees also learned that additional information on this matter would not be known until next week.

Virgin Orbit with new investor

According to Reuters, citing its sources, Sir Richard Branson had to find a new investor who would allow him to resume work on putting satellites into low Earth orbit.

According to the agency, Matthew Brown must contribute up to $200 million to the company. A preliminary agreement with a US investor was to be made and the company is expected to make an official announcement on Thursday, March 23.

This would be the fulfillment of a promise that the management of the space company made to its employees. News about the company’s future was to be announced a week after it was suspended. March 23 will also be the day of the resumption of work in the company. Employees must return to the office and begin preparations for the next space flight.

The stock market is reacting

Investors were very pleased with the news about the receipt of funding and the resumption of work. Before the stock market opened, Virgin Orbit’s stock jumped as much as 60 percent.

Designed by: Martin Haber
Source: Reuters

Source: Wprost

More articles


Please enter your comment!
Please enter your name here

Related Stories