Cash lifeline for Virgin Orbit
The cash will be made available via a private placement of preferred shares with Matthew Brown entitled to convert his $200 million in preferred shares into common shares at the volume weighted average price in the 30 days prior to the date upon which the deal is signed.
Brown is expected to get a majority interest in the company which is currently owned 75% by Richard Branson and 15% by the Emirates sovereign wealth fund Mubadala.
Brown is the chairman of the Dallas family office Matthew Brown Cos. and general partner at asset manager Energent Energy.
Brown has previously invested in SpaceX, Rocket Lab and Astra.
Virgin Orbit had a Q3 loss of nearly $44 million for the third quarter and had cash reserves of about $71 million down from $122 million at the end of June.
Branson has said he’s not prepared to invest more capital in the business.
The deal is expected to be announced either later today or on Friday.