Why Virgin Galactic (SPCE) Stock Fell Sharply on Thursday

Virgin Galactic (NYSE: SPCE) stock price is down nearly 10% in pre-open Thursday after the company announced it will offer $425 million in convertible notes.

The space company said it will use the raised capital to “fund working capital, general and administrative matters and capital expenditures to accelerate the development of its spacecraft fleet in order to facilitate high-volume commercial service.”

A portion of raised funds will be used to fund the cost of entering into the capped call transactions.

Virgin Galactic stock price closed at $12.37 yesterday, down 8.6% to start the new year.

By Senad Karaahmetovic | [email protected]

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