雅虎香港財經 Virgin Galactic shares sink after board approves reverse stock split
(Bloomberg) — Virgin Galactic Holdings Inc. shares tumbled after the company’s board of directors agreed to a 1-for-20 reverse stock split aimed at maintaining the stock’s listing on the New York Stock Exchange.
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The Richard Branson-founded space tourism company proposed the reverse split in April after its stock had fallen below $1 a share for the first time. Virgin Galactic had not determined the exact ratio for the split at the time, but expected that the ratio would be between 1-for-2 and 1-for-20.
In a statement, Virgin Galactic said the “primary goal of the reverse stock split is to increase the per share market price of the company’s common stock,” in order to maintain compliance with stock market standards. Stocks typically maintain a minimum average closing price of at least $1 a share over 30 days to avoid being delisted.
Shares in Virgin Galactic tumbled as much as 31% after regular trading in New York on Wednesday before paring the decline. They were down almost 10% in pre-market trading on Thursday.
The vote comes four days after Virgin Galactic performed its last spaceflight of the year before a hiatus from commercial operations. The company plans to pause sending tourists to space in order to focus on developing a new class of spaceplanes known as Delta, which are meant to be easier to turnaround and reuse between flights.
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