VIRGIN GALACTIC COMPLETES MERGER WITH SOCIAL CAPITAL HEDOSOPHIA, CREATING THE WORLD'S FIRST AND ONLY PUBLICLY TRADED COMMERCIAL HUMAN SPACEFLIGHT COMPANYOCTOBER, 25, 2019NEW YORK--(BUSINESS WIRE)--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.VG already has customer reservations from more than 600 people in 60 countries representing approximately $80 million in total collected deposits, and over $120 million of potential revenue. The completion of this merger and trading as a public company are the next milestones on the path towards building a thriving commercial service business and investing appropriately for the future.George Whitesides, CEO of Virgin Galactic Holdings said:“Today is the start of a new era for the human spaceflight industry. VG has already pioneered several important space milestones, including sending the first test passenger to space onboard a commercial vehicle, and today’s announcement is no different. Now that VG is a publicly traded company, anyone can invest in a human spaceflight company that is striving to truly transform the market and be part of the excitement of the commercial space industry. I am proud of the strong flow of customer deposits and interest we have earned to date, and look forward to making the dream of spaceflight come true for our amazing astronaut customers.”Chamath Palihapitiya, Founder and CEO of SCH, said:“Since our founding, SCH set out to unite technologists, entrepreneurs and technology-oriented investors around a shared vision. What was once a pursuit is now a successfully completed mission. We are pleased to have reached today’s monumental milestone and look forward to continuing to work with the Company to transform the commercial space industry.”Sir Richard Branson, Founder of Virgin Galactic, said:“To fellow investors, employees of VG and The Spaceship Company, business partners and customers – thank you for your commitment to our great company, which has made today’s exciting announcement possible. With our proprietary spaceflight system, special airspace access at Spaceport America, globally-recognized brand and broad investor interest, I believe VG is ideally positioned to capitalize on the fast-growing, multibillion-dollar commercial space market and ultimately open space to thousands of new astronauts. Today, we achieved one mission, and as we bring more and more future astronauts to space, we look forward to the future.”Transaction DetailsAs a result of this transaction, Virgin Galactic has received over $450m of primary proceeds and as at market close on Friday 25th October, the business has a market capitalization of $2.3bn. Going forward, existing Virgin Galactic shareholders will own nearly 59%. The Company’s board of directors consists of Chamath Palihapitiya as Chairman, Adam Bain and James Ryans, who were directors of SCH, as well as Wanda Austin, Craig Kreeger, George Mattson, Evan Lovell and George Whitesides.About Virgin Galactic HoldingsVirgin Galactic Holdings, Inc. is a vertically-integrated aerospace company pioneering human spaceflight for private individuals and researchers. It believes the commercial exploration of space represents one of the most exciting and significant technology initiatives of our time. It is embarking on this commercial exploration journey with a mission to put humans into space and return them safely to earth on a routine, consistent and affordable basis. Using its proprietary and reusable technologies, and supported by a distinctive, Virgin-branded customer experience, it is developing a spaceflight system designed to offer customers a unique, multi-day experience culminating in a spaceflight that includes several minutes of weightlessness and views of Earth from space. It is in the final stages of development, having already completed multiple crewed flights of its vehicle into space, and anticipates initial commercial launch in 2020.
OCTOBER 28, 2019Invest in the Future of Human SpaceflightVirgin Galactic’s Purpose states that “Together we Open Space to Change the World for Good”. The “Together” part of that statement is important; space is hard and transforming the access we have to it, takes a concerted and combined effort.As Richard said in his “Letter to my Grandchildren” on the occasion of Virgin Galactic’s first space flight: “When you set off on challenging but important adventures exceptional people come forward to join the journey, people who are consistently by your side and on your side, people who share your dreams and people who help make them reality”.That has been Virgin Galactic’s experience from day one: our 600 Future Astronaut customers from 60 countries who provided a vital, early proof of market and who have helped to define and perfect our product; our incredible workforce –the only team in the world to have built and flown a Mach 3 winged, commercial space vehicle and our partners, like Land Rover, Under Armour and Boeing who are strengthening our business and enhancing our customers’ experience.The fascination with human spaceflight is universal and as we start to create a new transportation infrastructure which will transform our business and personal relationships with space, there will be more and more opportunities for everyone to get involved. That process of democratisation is at the heart of our business and what drives the new age of space exploration and discovery.We added one more in a long line of firsts today and furthered the democratisation of space, as Virgin Galactic Holdings became the first and only publicly listed human spaceflight company, with shares starting to trade on the New York Stock Exchange this morning, under the stock ticker SPCE.This historical milestone means that now, for the first time, anyone can invest in the exciting future of human spaceflight and contribute to the benefits to humanity, that we believe will result from improving space transportation and extending the space experience to many thousands of people from all walks of life.The successful conclusion of Virgin Galactic’s merger with Social Capital Hedosophia and the start of trading today is a result of an intense period of work but gives us a solid foundation to complete our flight test program, commence regular commercial passenger flights with our SpaceShipTwo system and also start to look at future technologies and markets as we build the Spaceline for Earth.As Richard said at the start of trading in New York: “To fellow investors, employees of VG and The Spaceship Company, business partners and customers – thank you for your commitment to our great company, which has made today’s exciting announcement possible. With our proprietary spaceflight system, special airspace access at Spaceport America, globally-recognized brand and broad investor interest, we believe Virgin Galactic is ideally positioned to capitalize on the fast-growing, multibillion-dollar commercial space market and ultimately open space to thousands of new astronauts. Today, we accomplished one mission, and as we bring more and more future astronauts to space, we look forward to accomplishing many more.”
@TimFernholz What does VG bring to the table for point to point that Boeing couldn't do on its own? They have no useful technology for it, as far as I know.
per Boeing, SpaceShipTwo IP and test data useful for understanding suborbital rocketplanes; they will gain insight into investor interest and market conditions; they will learn about operating a rocketplane regularly from an airport. It's a small investment for Boeing
I hope it's small, because it doesn't sound like much value there. VG doesn't actually have any experience operating rockets out of airports, because they air launch. If XCOR had operated Lynx, they'd have some experience, but air launching a hybrid motor is not rocket science.
Discussion on Boeing’s interest in VG:
Virgin Galactic Struggles Since Its Public TakeoffJustin Bachman, Bloomberg - Nov 02, 2019 11:30 amRichard Branson’s Virgin Galactic Holdings Inc. is getting off to a rocky start as the first publicly traded space-tourism company.The shares have yet to post a daily gain since adopting the SPCE ticker on October 28, following a merger with a shell investment company that was already trading. Virgin Galactic tumbled 11 percent to $9.41 at the close in New York, bringing this week’s decline to 20 percent
“I think what you’re seeing today is a market correction based on that hype wearing off a bit. It’s obviously hard to value a company that isn’t yet operational and has no firm date when that’s going to change.”
Watch CNBC's full interview with Sir Richard Branson, Chamath Palihapitiya and George Whitesides11,743 views•28 Oct 2019CNBC TelevisionVirgin Galactic co-founder Sir Richard Branson, CEO George Whitesides and Social Capital CEO Chamath Palihapitiya join CNBC's Morgan Brennan to discuss Virgin Galactic's public debut, the future of space travel and more.
NOVEMBER 12, 2019Virgin Galactic Announces Third Quarter Fiscal 2019 Financial ResultsVirgin Galactic Holdings, Inc. (NYSE: SPCE) (“VG” or “the Company”), a vertically integrated aerospace company, today announced financial results for its third quarter of fiscal year 2019.Third quarter results for VG reflect the three months ended September 30, 2019, prior to the closing on October 25, 2019 of the recent business combination (the “Business Combination”) between VG’s predecessor, VGH, LLC, and Social Capital Hedosophia, a public investment vehicle. The Business Combination provided net proceeds to VG of over $430 million, which VG intends to use to fund its operations. Pre-transaction owners of VGH, LLC retained over 58% ownership of VG following the Business Combination.“We believe our third quarter results reflect our ongoing progress as we execute on our strategy toward commercial launch,” said George Whitesides, Chief Executive Officer of VG. “We are thrilled to have completed our merger with Social Capital Hedosophia and to be trading publicly, both of which are major steps forward in the Company’s mission to open space for everyone.”Recent Business Highlights: Transitioned approximately 60% of Virgin Galactic operations personnel from the headquarters in Mojave to Spaceport America, located in New Mexico.Achieved several operational milestones at Spaceport America, including the relocation of mothership VMS Eve, completing installation of the ground infrastructure, ground tests of all systems to ensure they are flight-ready and unveiling the operational hubs of Spaceport America as open and operational.Achieved several design and build milestones on the second SpaceShipTwo vehicle, including the attachment of the wing, fuselage cabin and tail booms.Announced strategic partnership with Boeing, which invested $20 million in VG on October 25, 2019.VG Pre-Business Combination Third Quarter Fiscal 2019 Financial Highlights: Received customer reservations as of September 30, 2019 from more than 600 people in 60 countries, representing approximately $80 million in total collected deposits, and over $120 million of potential revenue as of September 30, 2019.Received 3,557 expressions of interest in flight reservations as of September 30, 2019.Cash and cash equivalents were $85.5 million as of September 30, 2019.Revenue of $0.8 million and $3.3 million for the three and nine months ended September 30, 2019, respectively, which was generated by transporting scientific payloads and providing engineering services.Net loss of $51.5 million and $138.1 million for the three and nine months ended September 30, 2019, respectively.Net cash used in operating activities for the nine months ended September 30, 2019 was $128.3 million.Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (In thousands)2019201820192018 Revenue……………………………………………………………………………….. $ 832 $ 386 $ 3,252 $ 1,562Cost of revenue…………………………………………………………………….. 406 68 1,690 387 426 318 1,562 1,175Selling, general, and administrative expenses………………………….. 17,814 13,636 44,719 37,389Research and development expenses ……………………………………… 34,528 26,456 96,119 84,971Operating loss………………………………………………………………………. (51,916) (39,774) (139,276) (121,185)Interest income……………………………………………………………………. 387 164 1,137 344Interest expense ………………………………………………………………….. – 2 2 8Other income ………………………………………………………………………. 91 463 128 28,542Loss before income taxes………………………………………………………. (51,438 ) (39,149) (138,013) (92,307)Income tax expense ……………………………………………………………… 37 35 123 115Net loss ……………………………………………………………………………….. (51,475) (39,184 ) (138,136 ) (92,422)Other comprehensive income (loss): Foreign currency translation adjustment………………………………… (58) 5 (79) (17) Total comprehensive loss…………………………………………… $(51,533) $(39,179) $(138,215) $(92,439)Conference Calls Beginning with the announcement of the Company’s fourth quarter financial results in February 2020, the Company intends to host a quarterly conference call with members of the management team to discuss the results for the prior quarter. The quarterly conference calls and supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website.About Virgin Galactic HoldingsVirgin Galactic Holdings, Inc. is a vertically-integrated aerospace company pioneering human spaceflight for private individuals and researchers. It believes the commercial exploration of space represents one of the most exciting and significant technology initiatives of our time. It is embarking on this commercial exploration journey with a mission to put humans into space and return them safely to earth on a routine, consistent and affordable basis. Using its proprietary and reusable technologies, and supported by a distinctive, Virgin-branded customer experience, it is developing a spaceflight system designed to offer customers a unique, multi-day experience culminating in a spaceflight that includes several minutes of weightlessness and views of Earth from space. It is in the final stages of development, having already completed multiple crewed flights of its vehicle into space, and anticipates initial commercial launch in 2020.Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the registration statement on Form S-4 filed in connection with the Business Combination and other documents filed by VG from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements.For media inquiries please contact: [email protected]UK, Middle East, Asia, Africa – Ollie Bailey-Pratt[email protected], +44 (203) 727-1000US, Canada, South America, Australia – Antonia Gray[email protected], +1 (347) 574-4352For Investor Relations inquiries please contact:[email protected]
Virgin Galactic $SPCE just got its second analyst rating and it's another buy:“Our bullish view reflects the near-term monopoly SPCE offers in an industry (commercial space tourism) where public investment opportunities are scarce."
Credit Suisse mentions Blue Origin as Virgin Galactic's nearest competitor but estimates Bezos' company is at least two years behind.Virgin Galactic “has a distinct first-to-market advantage."
Credit Suisse also mentions SpaceX with Starship as a long term threat to Virgin Galactic’s business:"A point-to-point solution serviced by Starship could convert space travel from a novelty experience to a commodity service," the analyst said.
Virgin Galactic shares to triple as it disrupt airlines with hypersonic travel, Morgan Stanley saysMichael Sheetz | @thesheetztweetzPublished 1 Hour Ago Updated 5 Mins AgoCNBC.comMorgan Stanley says Virgin Galactic's stock will soar as it proves out a long-term plan of flying people around the world at hypersonic speeds."A viable space tourism business is what you pay for today … but a chance to disrupt the multi-trillion-dollar airline [total addressable market] is what is really likely to drive the upside," Morgan Stanley analyst Adam Jonas says.Morgan Stanley forecast $800 billion in annual sales for hypersonic travel by 2040 and Virgin Galactic is in the early stages of exploring how the technologies it developed for space tourism might apply to hypersonic travel.
Wow, really?!Quote Virgin Galactic shares to triple as it disrupt airlines with hypersonic travel, Morgan Stanley saysMichael Sheetz | @thesheetztweetzPublished 1 Hour Ago Updated 5 Mins AgoCNBC.comMorgan Stanley says Virgin Galactic's stock will soar as it proves out a long-term plan of flying people around the world at hypersonic speeds."A viable space tourism business is what you pay for today … but a chance to disrupt the multi-trillion-dollar airline [total addressable market] is what is really likely to drive the upside," Morgan Stanley analyst Adam Jonas says.Morgan Stanley forecast $800 billion in annual sales for hypersonic travel by 2040 and Virgin Galactic is in the early stages of exploring how the technologies it developed for space tourism might apply to hypersonic travel.https://www.cnbc.com/amp/2019/12/09/morgan-stanley-buy-virgin-galactic-stock-on-hypersonic-opportunity.html
Virgin currently offer point to point travel via hypersonic speed. SS2 goes from a point at 50,000ft to another point at 50km altitude at hypersonic speeds.
As a public company this is a fun stock ticker to watch (not touch). +18% on an analyst upgrade is a ridiculous level of volatilityEDIT: and another +13% the next day.
Virgin Galactic $SPCE will announce fourth quarter results on Feb. 25 after the market closes (5 p.m. EST)This will be the first time the space tourism company hosts a quarterly conference call with management.
