The Space Investor - 🚀 Aerojet Seeks Acquisition

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• The company intends to use the net proceeds of the offering for general corporate purposes.
   
• B. Riley Securities is acting as sole bookrunner and underwriter for the offering. They will be granted a 30-day option to purchase up to an additional ~$11M worth of shares.
   
• Shares fell -9.0% on the news and closed the week -12.0% lower.

• Analyst Ronald Epstein kept the 'Underweight' rating, but cut the price target from $5 to $4 per share.
   
• While the firm believes Virgin will take measures to ensure liquidity in the near and long term, BofA see risks to their business model as macroeconomic headwinds continue to mount into the new year.
   
• "We believe these could have a much larger impact on Virgin Galactic relative to the rest of our coverage given the discretionary nature of its business model."

• The company has been running a process to find a buyer for itself following the blocked $4.4B sale to Lockheed Martin ($LMT) per antitrust regulators.
   
• Also in the mix are Textron Inc ($TXT) and PE firm Veritas Capital. Aerojet does not see any of the named bidders subject to antitrust issues as "none are direct competitors or share much of the same supply chain."
   
• If the negotiations conclude successfully, a deal could be completed by end of the month.

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