Virgin Orbit is in the final stages of securing an investment of $200 million from Texas-based businessman Matthew Brown.
Deal negotiations between Virgin Orbit and Brown started last week, around the time the business announced it was suspending operations and laying off the majority of staff in order to seek financial support.
According to the sources who requested anonymity to disclose private discussions, Brown would receive a controlling interest in the rocket manufacturer. The sides hope to finalize the agreement as soon as Thursday.
Meanwhile, according to one of the persons with knowledge of the situation, the business has kept in contact with a different unidentified possible investor who had been in conversation with Virgin Orbit before to the discussions with Brown.
The agreement comes as Virgin Orbit struggles to replenish its cash reserves and stave off the possibility of filing for bankruptcy.
In trading on Wednesday, shares of Virgin Orbit rose as high as 77% before giving up part of those gains to settle up 33% at 59 cents per share.
CEO Dan Hart announced to staff late on Tuesday that a “small” team will resume work on Thursday. While Virgin Orbit is extending the unpaid vacation for the remainder of the more than 750-person firm “through at least Monday,” Hart called this as the “first step” in a “incremental resumption of operations.”
In order to secure a financial arrangement, Hart stated on Tuesday that the business has “made some important progress” this week.
The financial boost occurs at a crucial juncture in Virgin Orbit’s rocket development.