Why Virgin Orbit (VORB) Shares Are Skyrocketing Today

Richard Branson's satellite launch company, Virgin Orbit Holdings, Inc. VORB, is jumping higher premarket Wednesday as it reportedly nears a $200 million investment from Texas-based venture capital investor Matthew Brown.
The investment is likely to be made through a private share placement, reported Reuters.
The report noted that the deal will help in boosting the confidence in the company after its market capitalization plunged to $150 million on Tuesday from more than $3 billion in 2021 when it went public through a blank-check deal.
Related: Historic UK Space Satellite Launch Fizzles Out As Rocket Disappears After Suffering 'Anomaly'
Virgin Orbit said last week it was exploring strategic alternatives and looking to raise funding after it paused operations and furloughed its staff on a cash crunch.
The company said it plans to bring back a small group of employees on Thursday to work on rocket upgrades.
Under the deal, Matthew Brown will be entitled to convert his $200 million investment in Virgin Orbit's preferred shares into common shares at the volume weighted average price in the 30 days before the deal is signed.
Branson's Virgin Investments is the largest shareholder now, with about 75% stake.
Price Action: VORB shares are trading higher by 62.88% at $0.7219 in premarket on the last check Wednesday.
Photo Via Company

Why Virgin Orbit Shares Are Skyrocketing Today