Why Virgin Galactic stock tumbled on Friday

Virgin Galactic (NYSE:) shares fell as much as 18% in pre-market Friday.

The sharp move to the downside occurred after the company said it entered an agreement for the sale of as much as $400 million of its common shares from time to time.

The sale will be conducted via Credit Suisse, Morgan Stanley, and Goldman Sachs.

Earlier this week, the embattled company said that Evan Lovell, Chair of its Board, passed away on June 20. Lovell previously served as Chief Investment Officer and managed the Virgin Group’s investment team globally.

The company said that Lovell will be replaced by Raymond Mabus on an interim basis.

SPCE stock price is up almost 53% through Thursday’s close.