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Virgin Galactic chairman sells $ 213 million stake
(Bloomberg) – Virgin Galactic Holdings Inc. fell on Friday after its billionaire chairman Chamath Palihapitiya offloaded shares worth around $ 213 million in the space tourism company founded by Richard Branson Palihapitiya, which contributed the rampant growth of blank check companies, sold 6.2 million shares at an average price of $ 34.32 this week, based on a filing with the US Securities and Exchange Commission. He still owns 15.8 million shares with his partner Ian Osborne via the investment company Social Capital Hedosophia, or around 6.5% of the capital. Palihapitiya previously sold shares worth nearly $ 100 million in December, according to the filings. Palihapitiya said it sold the shares to fund an investment to fight climate change. “The details of this investment will be made public in the coming months,” he said in a statement Friday. “I remain as dedicated as ever to the Virgin Galactic team, mission and outlook.” Read more: King of PSPC wants you to know he’s the next Warren Buffett Shares of Virgin Galactic fell 9.9% to $ 27.29 in New York on Friday and have slipped more than 50% since their peak in mid-February. The Las Cruces, New Mexico-based company merged with Social Capital’s first SPAC in 2019. Palihapitiya has since started blank check companies that have merged with companies in the Health insurance, financial services and real estate including Opendoor Technologies Inc. and Clover Health Investments Corp. Opendoor fell 9.8% on Friday, while Clover Health rose 7.5% after an earlier decline. Other Palihapitiya SPACs such as Social Capital Hedosophia Holdings Corp IV and V reversed the midday losses to end the day. Palihapitiya, 44, made a fortune for himself and his investors through PSPCs. The former Facebook Inc. executive has raised more than $ 4 billion through blank check companies, using social media to talk about investments and becoming one of the most prominent figures in the phenomenon, which has everyone , from Colin Kaepernick to former Speaker of the House, Paul Ryan. He’s also a lightning rod for skeptics who dismiss his success as the product of self-promotion and view blank check companies as evidence of a bubble inflated by government money printing. “If I could really go, I wouldn’t sell a share of everything I buy because I believe in it,” he said in February. 8 in an interview on Bloomberg Television’s “Front Row”. “But from time to time, I run into liquidity constraints, like everyone else.” At the time, Palihapitiya had just sold 3.8 million Virgin Galactic shares. He said he did it because his family office called the need for cash for other purposes. The merger of DropSocial Capital Shares with Virgin Galactic – where Palihapitiya is president – made the start. up Branson the world’s first publicly traded space travel company. The deal raised around $ 800 million, with Palihapitiya also contributing directly to $ 100 million. Although shares have jumped following the listing, they have fallen since February’s decision to delay the next flight to the city. ‘space. The new schedule also pushed back plans to transport Branson, 70, on a separate mission before Virgin Galactic took its first flight with passengers paying for the trip. The company announced the departure of its space director on Thursday. , George Whitesides, saying he has decided to seize potential opportunities in the public service. Whitesides, who served as chief executive for a decade until July 2020, will remain chairman of a four-person space advisory committee. Swami Iyer will join Virgin Galactic later this month as president of aerospace systems. Although Virgin Galactic has hundreds of customers lined up to pay at least $ 250,000 for a 90-minute flight to the edge of space, the trip has been slow since the business. was founded in 2004. Plans were put on hold for four years in 2014 after a mid-air spaceplane ruptured, killing one pilot and injuring another. Subscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP
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