Virgin Galactic Holdings Inc (SPCE)

[PennyWorld]

I'm not bashing, but their most recent 8K also announces that they plan on doing a boat load more dilution. Which will surely put downward pressure on the PPS. What puzzles me is they roughly have 2x their debt is cash (per Yahoo Finaince). So why not use the cash to pay off the debt. There is clearly some sort of cashflow problem. Here is an excerpt from the recent 8K......

On June 22, 2023, Virgin Galactic Holdings, Inc. (the “Company”) entered into a distribution agency agreement (the “Distribution Agency Agreement”) with Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC (each, an “Agent” and collectively, the “Agents”) providing for the offer and sale of up to $400,000,000 of shares of the Company’s common stock, par value $0.0001 per share, from time to time by the Company through the Agents, acting as the Company’s sales agents, or directly to one or more of the Agents, acting as principal.