Nasdaq to Suspend Virgin Orbit Stock, Company to Appeal Decision (Image Credit: Parabolic Arc)
Nasdaq said it would suspend Virgin Orbit’s (NAS: VORB) stock on April 13, 2023 due to the company’s Chapter 11 bankruptcy filing last week and its failure to file its 2022 annual report with the Securities and Exchange Commission (SEC). The stock fell to $0.15 in after-hours trading on Monday.
“The Company intends to appeal Nasdaq’s decision to delist the Common Stock and Warrants, but 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 can provide no assurance that its appeal will be successful,” the company said in a SEC filing.
“If the appeal is unsuccessful, it is expected that Nasdaq would file a Form 25 with the Securities and Exchange Commission (the ‘SEC’), which would remove the Company’s Common Stock and Warrants from listing and registration on Nasdaq,” the company added.
The air-launch company filed for bankruptcy on April 4 after failing to raise additional funds to continue operations. The filing came a day after Virgin Orbit laid off 675 of its 775 employees.