Virgin Galactic stock took a nosedive on Friday after Chairman Chamath Palihapitiya paid out his personal stake for approximately $ 213 million.
Richard Branson’s space exploration firm fell 21 percent to a low of $ 23.95 after Palihapitiya, a noted venture capitalist, revealed that he dumped the last 6.2 million shares in his personal portfolio.
The stock recently fell 13 percent to $ 26.45 as of 2:10 PM.
Virgin Galactic’s share price more than doubled at the start of the year, but has nearly wiped those gains since Feb.11.
Palihapitiya had previously reduced its stake in the company by 3.8 million shares in December Unlock cash for new projects. He Business Insider said The proceeds from the last sale will go towards a large investment I’m making in combating climate change.
“The details of this investment will be published in the next few months,” said the chief of social capital in a statement to the sales outlet. “I am still committed to the team, mission and perspective of Virgin Galactic.”
Palihapitiya and his business partner Ian Osborne still own indirectly through an investment firm called SCH Sponsor Corp. around 16 million shares in the spaceship builder. The couple helped bring Virgin Galactic public in 2019 by merging it with their special purpose vehicle, Social Capital Hedosophia.
Virgo Galactic completed The first rocket-powered flight from its New Mexico spaceport in December plans to eventually launch paying customers into space.
More than 600 people bought tickets for flights where they can take a look at the earth and experience weightlessness.
With postal wires