The Space Investor - 🚀 Virgin Orbit in Trouble?

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• And similar to SatixFy ($SATX) last week, market's weren't kind to the news with shares falling -51% this week.
   
• Originally estimated for 15M shares of Class A common stock, 17.25M shares were sold to the public at $0.30 per share. Sidus also granted the underwriters a 45-day option to purchase up to an additional 2.25M shares, which received full exercise.
   
• The Company intends to use the net proceeds of the offering "for sales and marketing, operational costs, product development, manufacturing expansion and the remaining proceeds for working capital and other general corporate purposes."

• On Monday, Virgin Orbit sold and issued to Virgin Investments Limited a senior secured convertible note in the principal amount of $10M, with a 12% interest rate. This follows similar debt raises of $25M and $20M in November and December at 6%.
   
• The Company notes it use the net proceeds for "working capital." It is assumed VORB is currently under a liquidity crunch following its latest launch failure. Who would have thought $VORB would potentially be in worse shape than $SPCE 6 months ago? Not us.
   
• We will get a better picture when the company reports Q4'22 earnings in the coming month. VORB reported operating losses of ~$(150)M through the first nine months of 2022.

• The firm named Rocket Lab ($RKLB) its top pick of the year, downgraded Astra ($ASTR) to a 'Hold' rating from 'Buy' cutting its price target to $1 per share from $2, and called BlackSky ($BKSY) their “wild-card sleeper pick” for the year.

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