Virgin Galactic Chairman Chamath Palihapitiya Sells Entire Personal Stake Worth $213 Million

Chamath Palihapitiya (Credit: SCH)
  • Move follows Palihapitiya’s sale of shares worth nearly $98 million in December
  • Virgin Galactic shares continued weeks-long decline after news broke
  • Palihapitiya indirectly owns a large stake through Social Capital Hedosophia

by Douglas Messier
Managing Editor

Virgin Galactic Chairman Chamath Palihapitiya has sold 6.2 million personal shares in the suborbital space tourism company worth about $213 million. The sale zeros out his personal stake in Virgin Galactic.

The move follows Palihapitiya’s sale of 3.8 million shares worth $97.8 million in December. The nearly $311 million gain is more than triple the $100 million he personally invested in Virgin Galactic when it went public 16 months ago.

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Virgin Galactic Stock Plunges as Company Delays Space Tourism Flights to 2022

SpaceShipTwo VSS Unity arrives at Spaceport America aboard WhiteKnightTwo VMS Eve. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

Shares of Virgin Galactic plunged sharply on Thursday as the company announced that it was postponing the start of commercial suborbital space tourism flights until 2022 due to additional delays in completing SpaceShipTwo VSS Unity‘s test program.

Shares plunged in after hours trading to $36.69 after opening the day at $45.04. Most of the decline occurred in after hours trading following the release of Virgin Galactic quarterly and full year 2020 earning report.

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Why Virgin Galactic Went SPAC

Richard Branson celebrates the first Virgin Galactic trade on the New York Stock Exchange. (Credit Virgin Galactic)

by Douglas Messier
Managing Editor

During the SmallSat Symposium last week, Richard Branson was asked why Virgin Galactic had gone public using a special purpose acquisition company (SPAC).

“I’m impatient. The SPAC gets through all of the rigmarole of public companies. Yes, I thought, that’s great, let’s do it,” he replied.

Branson was half right. A SPAC makes it a lot easier for a company to go public. But, impatience was probably not the main reason Virgin Galactic went SPAC.

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As Virgin Galactic Crew Celebrated Second Suborbital Flight, Problems Loomed Behind the Scenes

Chief Pilot David Mackay celebrates a successful flight with champagne as Chief Astronaut Beth Moses looks on. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

Newly arrived back on Earth after a quick visit to space, Virgin Galactic Chief Astronaut Beth Moses was effusive as she described the suborbital flight she had just taken aboard the company’s SpaceShipTwo rocket plane, VSS Unity.

“Richard, you’re going to love it!” she told Virgin Chairman Richard Branson, who had remotely monitored the Feb. 22, 2019 flight that had taken place over California’s Mojave Desert.

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Monday Musings: Brazil’s Choices, VG’s Finances & More

Launch trajectories from Alcantara (Credit: AEB)

by Douglas Messier
Managing Editor

A few thoughts as we begin week 403 of the Covid-19 lock down….

Location. Location. Location.

The three most important words in real estate. And Brazil’s Alcantara Launch Center has got it.

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Virgin Galactic Stock Goes Up Again (After Going Way Down)

Sir Richard Branson and New Mexico Gov. Bill Richardson in front of WhiteKnightTwo and SpaceShipTwo during the Spaceport America runway dedication ceremony in October 2010. The spaceport still awaits its first suborbital flight. (Credit: Douglas Messier)

by Douglas Messier
Managing Editor

Virgin Galactic’s wild roller coaster ride on Wall Street continued over the past week as Richard Branson’s spaceline marked five months as a publicly traded company and 13 months since the last launch of its SpaceShipTwo suborbital tourism vehicle.

Since debuting on the New York Stock Exchange at $12 last Oct. 28, the stock soared to a high of $42.49 on Feb. 20 before sinking to $10.49 on March 19. Over the past week, the stock has risen again; it reached $14.68 in after-hours trading on Monday.

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2019: A Busy Year in Suborbital Flight

Blue Origin’s New Shepard reusable, suborbital rocket. (Credits: Blue Origin)

by Douglas Messier
Managing Editor

Last year was a busy one for suborbital flights as Jeff Bezos’ Blue Origin and Richard Branson’s Virgin Galactic conducted a combined four flights of their crewed suborbital vehicles. Despite hopes to the contrary, neither company flew paying tourists on their spaceships.

There were also 26 sounding rocket launches that carried scientific experiments and technology payloads above the atmosphere. The year saw:

  • Japanese startup Interstellar Technologies conduct a successful launch of its Momo commercial sounding rocket;
  • Texas-based Exos Aerospace continue to struggle with its reusable SARGE booster; and,
  • the first suborbital launch ever achieved by college students.
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Richard Branson’s Virgin Galactic Goes Public With Extravagant Promises to Keep

Richard Branson wears the SpaceShipTwo flight suit. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

After 15 years of making extravagant but unkept promises to fly more than 600 “future astronauts” to space, Richard Branson must now please an entirely new group of people who are usually much shorter on patience: shareholders.

Following the completion last week of a merger with Social Capital Hedosophia (SCH), the British billionaire’s Virgin Galactic suborbital “space line” will begin trading under its own name on the New York Stock Exchange (NYSE) on Monday.

Going public now is an unusual move for a space tourism company that hasn’t flown a singlet tourist to space since Branson announced the SpaceShipTwo program in 2004. Some might see it has putting the cart before the horse.

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Virgin Galactic Completes Merger with Social Capital Hedosophia

SpaceShipTwo Unity during third flight test. (Credit: MarsScientific.com & Trumbull Studios)

NEW YORK, October 25, 2019 (Virgin Galactic PR) — Virgin Galactic (“VG”), a vertically integrated aerospace company, and Social Capital Hedosophia (“SCH”), a public investment vehicle, today announced the completion of their previously announced business combination.

The resulting company is named Virgin Galactic Holdings, Inc. (“VGH”) and its common stock, units and warrants are expected to commence trading on the New York Stock Exchange under the new ticker symbol “SPCE”, ”SPCE.U” and “SPCE WS”, respectively, on October 28, 2019. The Company manufactures its space vehicles in Mojave, California, through its aerospace development subsidiary The Spaceship Company, with commercial operations centered at Spaceport America in New Mexico.

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Virgin Galactic Goes Public on Monday

SpaceShipTwo after being released for its final flight. (Credit: Virgin Galactic/NTSB)

On Monday, Virgin Galactic will become the first space tourism company to be publicly traded on a stock exchange — without having flown a single space tourist in the two decades since Richard Branson founded the company.

The move to list on the New York Stock Exchange (NYSE) comes after shareholders of Social Capital Hedosophia (SCH) overwhelmingly approved an $774 million acquisition deal on Wednesday. The proposal received more than 95 percent of the 61.3 million votes cast.

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Virgin Galactic Adds Members to Board of Directors

WhiteKnightTwo and SpaceShipTwo take off at 7:11 a.m. PST from the Mojave Air and Space Port. (Credit: Kenneth Brown)

New York, USA, October 10, 2019 (Virgin Galactic PR) — Social Capital Hedosophia Holdings Corp. (“SCH”) and Virgin Galactic today announced that Wanda Austin, Craig Kreeger and George Mattson have agreed to join the board of directors of Virgin Galactic Holdings, Inc. (“VGH”), the company resulting from the pending business combination transaction involving SCH and Virgin Galactic. The board appointments are contingent on approval by SCH’s shareholders and the completion of the business combination between SCH and Virgin Galactic.

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Social Capital Hedosophia to Vote on Virgin Galactic Merger on Oct. 23

The second SpaceShipTwo is carried aloft by WhiteKnightTwo on its first captive carry flight. (Credit: Virgin Galactic)

NEW YORK, Oct. 10, 2019 (SCH PR) —Social Capital Hedosophia Holdings Corp. (“SCH”) announced today that it will hold its extraordinary general meeting (the “Extraordinary General Meeting”) at 12:30 p.m., Eastern Time, on October 23, 2019, to approve, among other things, the previously announced business combination (the “Business Combination”) with TSC Vehicle Holdings, Inc., Virgin Galactic Vehicle Holdings, Inc. and V4GH, LLC (collectively, “Virgin Galactic” and, together with Vieco USA, Inc. and Vieco 10 Limited, “VG”). The Extraordinary General Meeting is scheduled to be held at The Westin Palo Alto, located at 675 El Camino Real, Palo Alto, CA 94301.

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A Short Review of Virgin Galactic’s Long History

SpaceShipTwo fires its hybrid engine. (Credit: Kenneth Brown)

by Douglas Messier
Managing Editor

Today, Sept. 27, marks the 15th anniversary of Richard Branson announcing the launch of Virgin Galactic Airways. It’s been a long, winding road between that day and today, filled with many broken promises, missed deadlines, fatal accidents and a pair of spaceflights.

This year actually marks a double anniversary: it’s been 20 years since Branson registered the company and began searching for a vehicle the company could use to fly tourists into suborbital space.

Below is a timeline of the important events over that period.

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Spaceport America and Virgin Galactic: The Numbers Never Added Up

Richard Branson and his children hang out with Project Bandaloop dancers during the dedication of the Virgin Galactic Gateway to Space facility. (Credit: Douglas Messier)

Fourteen years ago, Virgin Galactic and New Mexico promised “tens of thousands” of tourists would fly to space from Spaceport America by 2019. Total thus far: 0.

by Douglas Messier
Managing Editor

When they announced in December 2005 that Virgin Galactic would locate its space tourism business in New Mexico, Virgin Founder Richard Branson and Gov. Bill Richardson made a number of eye-popping claims about why taxpayers should back a plan to build the Southwest Regional Spaceport to serve as the space tourism company’s home base:

  • $331 million in total construction revenues in 2007;
  • 2,460 construction-related jobs;
  • $1 billion in total spending, payroll of $300 million and 2,300 jobs by the fifth year of operation; and,
  • $750 million in total revenues and more than 3,500 jobs by 2020.

Virgin Galactic would sign a 20-year lease as anchor tenant and pay fees based on the number of launches it conducted. New Mexico would use the spaceport, Virgin’s presence and the funds generated to develop a large aerospace cluster.

Surprisingly, New Mexico would spend more money, $225 million, to develop a facility now known as Spaceport America than the $108 million that Branson planned to spend on developing a fleet of five SpaceShipTwos and WhiteKnightTwo carrier aircraft.

Among all the big numbers in the announcement, there was a truly astounding one that was deemed so important it was mentioned twice. (Emphasis added)

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