Virgin Orbit financing in startups as SPAC union ends

Virgin Orbit

Virgin Orbit plans to complete its union with a special purpose acquisition company (SPAC). The launch provider announces a series of partnerships and investments in order to expand its business. 

Shareholders in NextGen Acquisition Corp. II plan to vote on 28th December on its merger with Virgin Orbit in an announcement on 23rd August. Such votes are generally the final step in concluding a SPAC deal, transforming Virgin Orbit into a publicly negotiated firm on the Nasdaq. 

When the merger made the announcement, the firms estimated the deal to raise up to $483 million, of which – 

  • $383 million was from the profits of the SPAC 
  • $100 million in private investment in public equity (PIPE) round 

It includes AE Industrial Partners and Boeing as investors. That amount, though, is dependent on the number of refurbishments. This is where shareholders of the SPAC ask for their money back than hold shares in the merged firm. 

Virgin Orbit and NextGen make an announcement on 23rd December that the Virgin Group agrees to invest up to $100 million as an additional PIPE. The firms mention that a specific amount “will be defined by the amount of investment if any. The requirement to fulfill the least cash condition as specified in the merger agreement.” 

The co-founders of NextGen are as follows – 

  • George Mattson 
  • Gregory Summe 

The above-mentioned in the statement that the pledge from the Virgin Group means “we think we have a clear path to a profitable closing of our merger.” Awaiting the shareholder vote on 28th December. 

Hart mentions on 22nd December that after the Above the Clouds operation, he expects Virgin Orbit to perform five to six more launches in 2022. That will consist of a launch from Spaceport Cornwall in England in mid-2022. He says Virgin Orbit has a target of 18 launches in 2023. 

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