Virgin Galactic leaders in front of the New York Stock Exchange, from the left: CEO George Whitesides, founder Richard Branson and President Chamath Palihapitiya.
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Billionaire investor Chamath Palihapitiya, president of Virgin Galactic who went public through a deal with SPAC in 2019, sold his remaining personal stake this week, a stock document revealed.
Palihapitiya sold about 6.2 million Virgin Galactic shares on Tuesday and Wednesday, for about $ 213 million at average selling prices.
He still indirectly owns about 15.8 million shares through Social Capital Hedosophia Holdings – the special purpose acquisition company he formed with investor Ian Osborne.
Palihapitiya, in a statement to CNBC, said he plans to redirect the sale “to a major investment I am making in fighting climate change”.
“The details of this investment will be released in the coming months. I remain as dedicated as ever to Virgin Galactic’s team, mission and perspectives,” Palihapitiya said in the statement.
Virgin Galactic shares fell up to 7% in Friday’s trading, compared to the previous close of $ 30.30. The company’s stock, which fell more than 25% this week, has lost more than half its value since it hit a record high of $ 62.80 in early February.
The shares have remained positive since the beginning of 2021, however, with an increase of about 18%.
Virgin Galactic’s jet and spacecraft are preparing to take off from Spaceport America in New Mexico on December 12, 2020.
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Palihapitiya in December sold about 3.8 million shares of its stake in Virgin Galactic. At the time, Palihapitiya said he sold the shares “to help manage my liquidity while financing several new projects starting in 2021”.
“I remain committed and excited about the future of SPCE. I just wanted to be transparent,” said Palihapitiya in a tweet.
Its latest sales came a week after Virgin Galactic revealed further delays in its spacecraft testing program, saying it now does not expect commercial flights to begin until early 2022. When Palihapitiya’s SPAC merged with Sir’s company Richard Branson, Virgin Galactic said it expected commercial space flights to start in the summer of 2020.
In addition, former Virgin Galactic CEO George Whitesides is stepping down as space director, a spokesman told CNBC on Wednesday. Whitesides, who last year ceased to be CEO of former Disney executive Michael Colglazier, plans to explore public service opportunities, the company said.
Whitesides will remain as chairman of the Virgin Galactic Space Advisory Council, and he and his wife have space flight tickets purchased in 2005.
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