Virgin Galactic stock tumbles after space-tourism company seeks to raise $400 million

Shares of Virgin Galactic Holdings Inc. tumbled Friday, after the space-tourism company said in a filing it seeks to raise $400 million through the sale of common stock to improve its fleet and scale its business.

Virgin Galactic
SPCE,
-15.04%
said that the new raise, which represents about 27% of the company’s market capitalization as of Thursday’s close, follows the completion of a $300 million raise under a previous agreement.