Virgin Orbit suspends operations for a week
Shares of Virgin Orbit fell 4.72 percent to close at $1.01 per share on Wednesday. After the news of the company's shutdown broke out, Virgin Orbit's stock fell more than 50% in after-hours trading. Virgin Orbit goes public in December 2021 at an offering price of close to $10 per share.
Virgin Orbit primarily uses modified 747 jets to launch rockets from the air. But the company's most recent mission failed when a problem during launch caused the rocket to miss its intended orbit and crash into the ocean.
In early November last year, Virgin Orbit announced its third-quarter results. The company ended the quarter with $71.2 million in cash on hand. Virgin Orbit reported revenue of $30.9 million for the quarter, with an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $42.9 million due to continued expenses.