Virgin Galactic Slips 12% On New $500 Mln Offering

Shares of Virgin Galactic Holdings, Inc. (SPCE) are currently slipping over 12% after the space exploration company announced plans to sell shares of up to $500 million.

SPCE is currently trading at $43.16, up $6.04 or 12.27%, on the Nasdaq. The company's shares had gained about 8% pre-market, but slipped 10% in early trading hurt by the new offering news.

The company, which plans to start space tourism, had on Sunday conducted its first fully crewed flight sending Richard Branson into space, helping the billionaire founder to beat Blue Origin's Jeff Bezos to space. It plans to start commercial service in early 2022.

Virgin Galactic, on Monday in a filing, said it may sell up to $500 million worth of shares. The company plans to use the proceeds for general corporate purposes. The company also said it will use a portion of proceeds to co-develop, acquire or invest in products, technologies or businesses that are complementary to business.

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