Less than one week after filing for Chapter 11 bankruptcy, Virgin Orbit was notified by the Nasdaq stock exchange that its common stock and warrants to purchase common stock would be suspended as of the opening of business Thursday, according to the company.
In addition to the bankruptcy filing, Nasdaq also stated the company is out of compliance with listing rules due to its failure to file its annual Form 10-K for the fiscal year ending Dec. 31, 2022, the Long Beach-based company announced earlier this week.
Virgin Orbit is appealing the decision but stated it can “provide no assurances” it will be successful.
“Pursuant to Nasdaq’s listing rules, such appeal will not impact the upcoming suspension of trading in the common stock and warrants, and such suspension will remain in effect unless Nasdaq determines to reinstate the securities as part of the Company’s appeal,” the company stated.
If the appeal is unsuccessful, Richard Branson’s small satellite launch company expects Nasdaq to file a Form 25 with the U.S. Securities and Exchange Commission, which would remove the common stock and warrants from listing and registration on the stock exchange.
Virgin Orbit went public in January of last year, with a stock price of just over $4 per share. Since then, however, the share price has been on a steady decline.
On March 15 of this year, the share price was $1.01. That same day, the company announced it would pause operations and put almost all its roughly 750 employees on unpaid leave while it worked to secure additional funding. At opening the next day, the stock had plunged to 70 cents.
The struggling stock reached back up to 80 cents by March 28, but over the next four days, it would plummet to 37 cents.
On March 30, the company announced it would lay off 675 employees, or 85% of its workforce. The stock took another dive from 33 cents to 20 cents.
The company filed for Chapter 11 bankruptcy on April 4, and the stock closed that day at 14 cents per share. The fewer than 100 remaining employees are working to sell off the business, the company stated at the time.
As of the closing bell Wednesday, each share of Virgin Orbit stock was worth a meager 7 cents.
Virgin Orbit files for Chapter 11 bankruptcy, seeks buyer