Richard Branson’s Virgin Orbit Closes SPAC Reverse Merger, Misses Fundraising Target
Richard Branson’s aerospace firm Virgin Orbit took its Nasdaq flight on Thursday. The firm’s parent company, Vieco USA, closed the previously announced business combination deal with special purpose acquisition company NextGen Acquisition Corp. II (Nasdaq: VORB).
However, the merger was met with a lukewarm reaction from the market as it only manages to raise US$228 million out of its fundraising target of US$483 million. This came in even after the Virgin Group announced a US$100 million additional PIPE investment days prior to the debut.
The blank check firm closed its US$350 million initial public offering in March 2021, offering 35 million company units at US$10.00 per unit. The company had said it planned to pursue a business combination with a firm in the industrial, technology, and healthcare sectors.
Following the closing of the deal, NextGen Acquisition changed its name to Virgin Orbit Holdings, Inc. while shares and warrants started trading on the Nasdaq big board under symbols “VORB” and “VORBW”, respectively.
Branson is expected to ring the Nasdaq opening bell on January 7, 2022.
Virgin Orbit last traded at US$9.14 on the Nasdaq.
Information for this briefing was found via Edgar, Financial Times, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
