Why Virgin Galactic Shares Are Falling Friday
Portfolio Pulse from Erica Kollmann
Virgin Galactic (NYSE:SPCE) shares are trading lower after announcing a $400 million dilutive stock offering to raise capital for spaceship fleet development and scaling commercial operations. This follows the completion of a previous $300 million offering.
June 23, 2023 | 4:38 pm
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Virgin Galactic's stock price is falling due to the announcement of a $400 million dilutive stock offering, which will be used to fund spaceship fleet development and commercial operations expansion.
The announcement of a dilutive stock offering typically leads to a decrease in stock price as it increases the number of outstanding shares, thus diluting the value of existing shares. In this case, Virgin Galactic's stock price is falling due to the announcement of a $400 million dilutive stock offering, which will be used to fund spaceship fleet development and commercial operations expansion.
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