- Virgin Galactic announced Friday that Chairman Chamath Palihapitiya is stepping down from the space-tourism company's board of directors, effective immediately.
- Palihapitiya's SPAC took Virgin Galactic public in October 2019.
- Board director Evan Lovell will serve as interim chairman, with a new chair expected to be selected at a later date, the company said.
Palihapitiya's SPAC, or special purpose acquisition company, took Virgin Galactic public in October 2019. The company's stock has faced volatile trading since then — climbing above $60 a share in the months ahead of Sir Richard Branson's test spaceflight, but it recently fell below its public debut price on news of a further delay in the start of commercial service.
The now-former chairman sold his personal Virgin Galactic stake in early 2021 that was worth over $200 million at the time. But he indirectly owns about 15.8 million shares through Social Capital Hedosophia Holdings.
In a statement, Palihapitiya said he is leaving "to focus on other existing and upcoming public board responsibilities" but is "proud to leave the team in such capable hands" and looks forward to "one day flying to space with them."
Virgin Galactic's stock slipped more than 5% Friday from its previous close of $9.01 a share.
"We've always known the time would come when he would shift his focus to new projects and pursuits," Virgin Galactic CEO Michael Colglazier said in a statement. "I'm grateful for everything Chamath has done for our company and wish him all the best."
Board director Evan Lovell will serve as interim chairman, with a new chair expected to be selected at a later date, the company said. In a filing, Virgin Galactic said Palihapitiya informed the board of his decision to resign on Thursday.
Virgin Galactic has steadily made changes to its structure and brand under Colglazier, who was appointed as chief executive in July 2020. Earlier this week, the company revealed a rebranding, replacing the iris of Branson in its logo with a purple outline of its spacecraft.