VORB - Virgin Orbit stock rockets 60% higher on reported talks to raise $200M

2023-03-22 07:10:31 ET

Virgin Orbit ( NASDAQ: VORB ) is nearing an agreement to secure a $200M investment from venture capital investor Matthew Brown via a private share placement, per reports.

After a launch failure in January , the company’s future has been thrown into significant doubt. In fact, the company was reportedly drawing up contingency plans in case of insolvency as recently as this week.

According to Reuters , the deal should close by Friday if all conditions are agreed upon. The agreement remains preliminary at this point. The details viewed by the outlet indicate Matthew Brown will be entitled to convert his $200M investment in Virgin Orbit's preferred shares into common shares at the volume weighted average price in the 30 days prior to the date upon which the deal is signed.

Shares of Virgin Orbit ripped 63% higher in premarket trading on the news.

Read more on the company’s recent moves to ensure operations keep running .

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