The man who arguably started the current PSPC rush with the merger of Virgin Galactic with its holding company Social Capital Hedosophia has ceded the rest of his personal holdings in the space tourism company. Chamath Palihapitiya, who is Chairman of the Board of Virgin Galactic, still owns 6.2% stake in the company in partnership with investor Ian Osborne, but his solo stakes are now at zero.
Palihapitiya sold 3.8 million shares in December 2020, noting that it was selling this capital “to help manage [his] liquidity ”in order to finance“ several new projects from 2021 ”. At the time, Palihapitiya said he “remains committed and excited for the future of SPCE [Virgin Galactic’s stock ticker on the NYSE]. “
The sale this week included 6.2 million shares, earning Palihapitiya around $ 213 million in the process. He has yet to comment on this most recent sale, and we’ve reached out to Virgin Galactic for further background, and we’ll update if we have any news.
Virgin Galactic has seen a few setbacks in its testing schedule that pushed back the scheduled date of its first commercial paid tourist flights until 2022, compared to an earlier target this year. The company appointed Disney Parks CEO Michael Colglazier as the new CEO last July, replacing George Whitesides, who served as director of space, before it was revealed on Thursday. that he was leaving the company.
Space as a sector has been a hotbed of SPAC activity lately, with mergers of a number of companies such as Astra, Spire, Rocket Lab, BlackSky and Momentus announced over the past year. Virgin Galactic, as one of the first, will be watched closely by anyone looking for a measuring stick to measure tactics. The value of the company’s stock is down just over 5% pre-market and has been declining steadily since reaching an all-time high around mid-February.