© Reuters.
By Vlad Schepkov
Shares of Virgin Orbit (NASDAQ:), the struggling aerospace pioneer, are spiking over 60% in pre-market on Wednesday following a Reuters report the cash-strapped company is nearing a $200 million financing deal with Texas-based investor Matthew Brown.
Per the term sheet seen by Reuters, VORB will enter a private placement agreement for $200M of preferred shares. Matthew Brown will be entitled to convert the preferred shares into common shares at the volume-weighted average price in the 30 days before the deal is signed.
The parties are reportedly still working out the exact details, but seek to close the deal by Friday.
If successful, the capital raise will provide a much-needed lifeline for the Richard Branson-backed space startup that saw shares sink nearly 94% in the last year, battered by mounting losses, dwindling cash, and a series of launch mishaps.
Last Thursday Virgin Orbit said it was forced to pause operations and commence a review of strategic alternatives, following reports Richard Branson refused to inject more cash into the struggling enterprise.
VORB is trading around $0.72 in pre-market on Wednesday, up over 62%.
