Virgin Galactic Reports Inducement Award Under NYSE Listing Rule 303A.08

Rhea-AI Summary

Virgin Galactic (NYSE: SPCE) announced a new employee inducement award under NYSE Listing Rule 303A.08.

The Compensation Committee approved a time-based restricted stock unit award of 1,741 shares, effective June 15, 2024, following a 1-for-20 reverse stock split effective June 14, 2024. The award falls under Virgin Galactic's 2023 Employment Inducement Incentive Award Plan and will vest over four years. 25% of the shares vest on the first anniversary of the grant date, with the remaining 75% vesting over the next 12 quarters, contingent on continued service.

Positive

• Approval of a time-based inducement restricted stock unit award shows confidence in attracting new talent.
• The 1-for-20 reverse stock split could potentially enhance the stock’s marketability and perceived value.
• The vesting schedule encourages long-term employment, potentially leading to more stability within the company.

Negative

• The reverse stock split may indicate underlying concerns about the stock price or market perception.
• Granting 1,741 shares could lead to minor shareholder dilution over the vesting period.
• Inducement awards, while potentially positive for employee retention, might signal difficulties in attracting talent without significant incentives.

ORANGE COUNTY, Calif.--(BUSINESS WIRE)-- Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”) announced that the Compensation Committee of Virgin Galactic’s Board of Directors approved the grant, effective June 15, 2024, of a time-based inducement restricted stock unit award of 1,741 shares of Virgin Galactic common stock (after taking into account the 1-for-20 reverse stock split of Virgin Galactic common stock, which became effective on June 14, 2024) to one new non-executive employee.

The award was granted under Virgin Galactic’s 2023 Employment Inducement Incentive Award Plan, which provides for the granting of equity awards to new employees of Virgin Galactic. The restricted stock unit award will vest over a four-year period: 25% of the underlying shares will vest on the first anniversary of the grant date and the remaining 75% of the shares will vest over the remaining 12 quarters, subject to continued service. The award was granted as an inducement material to the new employee entering into employment with Virgin Galactic, in accordance with NYSE Listing Rule 303A.08.

About Virgin Galactic

Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for private individuals and researchers with its advanced air and space vehicles. Scale and profitability are driven by next generation vehicles capable of bringing humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617532176/en/

For media inquiries:

Aleanna Crane - Vice President, Communications

news@virgingalactic.com

575.800.4422

For investor inquiries:

Eric Cerny - Vice President, Investor Relations

vg-ir@virgingalactic.com

949.774.7637

Source: Virgin Galactic Holdings, Inc.

FAQ

What is the significance of Virgin Galactic's inducement award announced on June 15, 2024?

The inducement award is a time-based restricted stock unit of 1,741 shares granted to a new non-executive employee to encourage long-term employment.

How does the 1-for-20 reverse stock split affect Virgin Galactic (SPCE) stock?

The 1-for-20 reverse stock split consolidates every 20 shares into one, potentially improving the stock’s marketability and perceived value.

What is the vesting schedule for the new inducement award by Virgin Galactic?

The award will vest over four years: 25% on the first anniversary, and the remaining 75% over the next 12 quarters, contingent on continued service.

Why did Virgin Galactic approve a restricted stock unit award under NYSE Listing Rule 303A.08?

The award was approved to attract new talent, viewed as material to the new employee joining Virgin Galactic, in compliance with NYSE Listing Rule 303A.08.

What is the impact of the inducement award on Virgin Galactic shareholders?

While aimed at attracting talent, the award could lead to minor shareholder dilution over the vesting period.