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Virgin Orbit (NASDAQ:VORB) stock is on the rise Wednesday following reports that the company is close to securing additional funding.
According to these reports, Virgin Orbit is in talks with venture capital investor Matthew Brown to supply the company with $200 million. This news comes after the company announced last week that it’s exploring strategic options.
The reports are based on a term sheet not made public yet. This shows that Brown would use a private share placement to provide funding to the satellite company. The deal would likely boost investor confidence after VORB’s market capitalization dropped to $150 million on Tuesday.
Insiders told Reuters that Virgin Orbit and Brown are working on finalizing the deal. The current goal is to have the funding agreement signed by Friday. If so, that could be a catalyst that sends VORB stock higher.
VORB Stock Movement Today
Investors are reacting well to news of potential funding for Virgin Orbit. This has shares seeing heavy trading on Wednesday. As of this writing, some 5 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 702,000 shares.
VORB stock is up 56.6% during pre-market stock trading on Wednesday.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
