Virgin Galactic raises $300 million, seeks another $400 million to expand spacecraft fleet

Virgin Galactic has successfully raised $300 million via an “at the market” offering of common stock, the company disclosed in a securities filing on Thursday.

Now, the space tourism company aims to raise an additional $400 million through a subsequent stock offering, as Virgin Galactic looks to fund the development and expansion of its spacecraft fleet.

Shares of Virgin Galactic have rallied since the company announced plans to launch its first commercial spaceflight by the end of this month.

The company opened the first fundraise on Aug. 4, saying at the time that the funds “would be used for general corporate purposes, including working capital, general and administrative matters, development of its spaceship fleet, and other infrastructure to scale its commercial operations.”

Virgin Galactic had cash and securities totaling $874 million at the end of the first quarter, it reported in May.

The company has a single carrier aircraft, VMS Eve, and one spacecraft, VSS Unity, which it’s said can conduct flights as frequently as once a month.

But Virgin Galactic’s growth hinges on its ability to expand its fleet with the Delta-class vehicles it is developing, and the common stock offerings are a way to stop gap its cash burn until those spacecraft are flying.