Richard Branson's Virgin Orbit Reportedly Close To Securing $200M Investment

Richard Branson‘s Virgin Orbit VORB is reportedly closing in on a $200 million investment.

What Happened: Virgin Orbit is nearing a $200 million investment through a private share placement from Texas-based venture capital investor Matthew Brown, reported Reuters.

Virgin Orbit and Brown are aiming to close the deal on Friday, the Reuters report stated, citing a term sheet. However, the term sheet is not binding and is subject to final agreement, the report added.

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Brown will be entitled to convert his $200 million investment in Virgin Orbit’s preferred shares into common shares under the deal. The shares will possess the same voting rights as common stock. Brown can convert the shares at the volume weighted average price in the 30 days before the deal is signed, the report said.

Last week, Virgin Orbit said it was halting all its operations and furloughed nearly all of its 750 employees. The company halted operations starting March 16 to look out for potential funding and explore other strategic opportunities. Virgin Orbit’s financial constraints were further aggravated after it failed to deploy nine small satellites into lower Earth orbit early this year.

Earlier this week, it was reported that Virgin Orbit is working with two restructuring firms on fallback plans for its insolvency days in the event that it cannot secure new funding. However, the company was in talks with multiple investors about funding to recommence operations.

Since listing on the Nasdaq in May 2021, Virgin Orbit shares fell 93.3% until last close.

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