- Virgin Orbit Holdings Inc VORB issued a legal notice to a little-known investor, Matthew Brown, who appeared to offer a $200 million rescue for the bankrupt satellite firm.
- The potential deal with Brown unraveled in less than a week, with Virgin Orbit walking away and threatening to take legal action against him if he revealed confidential details about the potential investment, according to the cease-and-desist letter reviewed by Reuters.
- The notice was in response to Brown's interview on CNBC on March 23 when he said he was in "final discussions" to close a $200 million investment in Virgin Orbit within 24 hours.
- The TV interview followed a report from Reuters that said Brown was close to a proposed investment in the company, citing the term sheet signed by Virgin Orbit Chief Executive Dan Hart and Brown and the planned closing date of March 24.
- Related Content: Richard Branson's Virgin Orbit Said To Extend Operations Halt After $200M Deal Talks Collapse.
- The letter from a lawyer for the company said Brown had overstated the nature of talks and breached a non-disclosure agreement.
- Reuters reported discrepancies in several key elements of Brown's assertions on CNBC or LinkedIn about the companies where he says he had worked, his investments, and associates.
- But in interviews with Reuters over the past week, Brown dismissed accusations he had misrepresented himself. He said Virgin Orbit had not provided the information he needed.
- Price Action: VORB shares are down 13.30% at $0.18 on the last check Monday.
- Photo via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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