By Scott Kanowsky
Investing.com -- Shares in Virgin Orbit Holdings Inc (NASDAQ:VORB) shed nearly 40% of their value in premarket trading on Thursday after the U.S.-based satellite company announced that will pause all operations while it seeks fresh funding.
The Nasdaq-listed company, which was founded by British billionaire businessman Richard Branson in 2017, did not say how long the halt will go on for. It also did not confirm earlier media reports that it would be temporarily placing all but a handful of workers on unpaid furlough.
“Virgin Orbit is initiating a company-wide operational pause, effective March 16, 2023, and anticipates providing an update on go-forward operations in the coming weeks,” the company said in a statement.
According to Reuters, Chief Executive Dan Hart told staff at a meeting on Wednesday that the furloughs would give the business more time to finalize a new investment plan. The firm previously secured $10 million in funds last month.
The decision comes after Virgin Orbit failed in January in its attempt to launch the first satellites into orbit from Europe. The firm said it has nearly completed its investigation into the mission.