Sir Richard Branson's Virgin Galactic fights to maintain New York listing

Shares in Sir Richard's space tourism venture have fallen 73% over the past year. Photo: REUTERS/Brendan McDermid

Sir Richard Branson's space tourism company Virgin Galactic is trying to save its US listing after its share price fell below the minimum required by stock exchange rules.

In The company said late Wednesday that it had received notice from the New York Stock Exchange that its shares had traded at an average price below $1 (Wall Street's low) for 30 days, potentially violating listing rules.

< p>This means Virgin Galactic risks being delisted from the New York Stock Exchange if it fails to raise its share price.

Last month, the company asked shareholders to approve a “reverse stock split,” which combines shares to increase the value of each individual unit. Investors will decide whether to approve the measure at the company's annual meeting in June.

Virgin Galactic's shares fell sharply last year amid a series of setbacks in its plans to send paid members of the public into space.

At market time the company was valued at $14bn (£11bn). There will be a boom in 2021, but it's currently worth about $391 million. The company's shares have fallen 73% over the past year.

Virgin Galactic was founded in 2004 and went public in 2019. Two years later, Sir Richard fulfilled a long-time dream by going to the edge of space.But the company has faced safety investigations and delays in launching regular commercial flights despite a waiting list of passengers paying up to $450,000.

The company plans to launch its second flight this year in the coming days , but Virgin Galactic said it would then suspend flights until 2026 to save money. The company is currently working on a next-generation spacecraft and hopes to use it when it resumes flights in two years.

Sir Richard's Virgin Group sold around half its stake in 2020 and 2021, and the company's shares were at their peak of its development. The company's stake remains at 7.5%.

Virgin Galactic said Wednesday it has six months to raise its average share price above $1. It is currently trading at 95 cents. If the company gets shareholder approval, its board of directors could combine two to 20 shares into one.

Jeff Bezos' Blue Origin, which also plans to send tourists into space, launched its first flight two years earlier. month.