Branson’s Virgin Group receives $1 billion from Galaxy stock sale

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Virgin Group Co., Ltd. update

Sir Richard Branson’s Virgin Group sold a US$1 billion stake in Virgin Galactic, a space travel company that went public through special-purpose acquisitions, in more than a year.

According to documents submitted to the U.S. Securities and Exchange Commission, the group has substantially reduced its holdings in Virgin Galactic in the past year, and earlier this week sold shares worth 300 million U.S. dollars, bringing total sales to just over 1 billion. Dollar.

Virgin Galactic is considered one of the early promoters of economic prosperity Blank Check Company It went public in 2019 with great fanfare. The space startup merged with Spac Social Capital Hedosophia, led by former Facebook executive Chamath Palihapitiya, and the transaction was valued at $2.3 billion when the company went public. Since then, the valuation has almost tripled to US$6.6 billion.

Spacs has raised approximately US$110 billion so far this year to find private companies to go public Regulatory agencies strengthen reviewOfficials from the US Securities and Exchange Commission called for greater transparency in the benefits of insiders.

Virgin Group began selling its shares in Virgin Galactic in May last year and sold approximately US$568 million worth of shares within a few weeks. Regulatory documents show that it sold a further $450 million worth of stock in April and August, including $300 million sold this week.

Representative of Branson, he recently defeated Amazon founder Jeff Bezos to become The first billionaire In order to fly into space, the company stated that the proceeds from the stock sale will be used to “support its global leisure, vacation and travel portfolio that continues to be affected by the Covid-19 pandemic.”

Virgin Group has been hit hard by the pandemic, and Branson has stated that he will mortgage his private island to help support his troubled business. He was criticized for seeking government assistance in the UK and Australia.

Virgin Galactic has always been a bright spot in his business portfolio, and its share price rose to more than $60 in February. However, since then, their value has shrunk by almost two-thirds, and the current transaction price is about $25. Morgan Stanley downgraded the stock to an underweight rating earlier this week.

Michael Colglazier, CEO of Virgin Galactic, Say Last month, the company planned to provide at least one flight per day, but he did not give a timetable for expanding commercial operations.

Although Branson sold the largest stake in Virgin Galactic, PalihapitiyaAs one of the company’s biggest supporters, he sold the remaining personal investment for $200 million in March.​​ The technology investor has become a familiar face on Wall Street after launching a series of Spacs, and he said he will redistribute cash to climate initiatives.

Palihapitiya and his Spac partner Ian Osborne still own the stock they acquired through the blank check tool that listed Virgin Galactic.

Virgin Group remains the single largest shareholder of Virgin Galactic, holding 18% of the shares.

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