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Virgin Orbit to strike $200 million deal with investor Matthew Brown
https://www.whatjobs.com/news/usa/us-business-news/virgin-orbit-to-strike-200-million-deal-with-investor-matthew-brown
By Nithya Bose in US business news, posted March 23, 2023
Struggling Virgin Orbit is in the final stages of securing funding of $200 million from Texas-based investor Matthew Brown.
A source said Virgin Orbit and Brown started discussing a deal last week after the firm was forced to put its staff on furlough for a week.
The discussions began when the firm declared it would halt operations to try to find financial support.
Read More: Virgin Orbit fights to stay afloat as employees look for new jobs
Sources said Brown would receive a controlling stake in the rocket manufacturer.
The agreement is expected to be finalized by today (Thursday, March 23) at the earliest.
A familiar person said the business has also contacted another unidentified potential investor.
He was reportedly in talks with Virgin Orbit before the discussions with Brown.
The deal comes as Virgin Orbit tries to replenish its cash reserves and stave off bankruptcy.
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Virgin Orbit did not respond to requests for comment.
CEO Dan Hart informed staff late Tuesday a "small" team will return to work on March 23.
Hart called it a "first step" toward an "incremental resumption of operations."
The rest of the company's over 750 employees will be on unpaid furlough until "at least Monday.”
Hart said Tuesday the company had “made some important progress” this week toward securing funds.
Brown is the chairman of the eponymous Dallas family office Matthew Brown Cos. and a general partner of Energent Energy.
Source: CNBC
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