Virgin Galactic Holdings, Inc. ( SPCE ) shares are falling after-hours Wednesday after the company announced it will effect a reverse stock split. 

The Details: Virgin Galactic ( SPCE ) announced its board of directors has approved a 1-for-20 reverse stock split of the company’s common stock which is expected to become effective at 5 p.m. ET on Friday, June 14.

The company’s common stock is expected to commence trading on a split-adjusted basis when the market opens on Monday, June 17 under the existing trading symbol “SPCE.”

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Virgin Galactic ( SPCE ) said the primary goal of the reverse stock split is to increase the per share market price of the company’s common stock to meet the minimum per share bid price requirement for continued listing on the New York Stock Exchange. 

The reverse stock split was approved by the company’s stockholders at its annual meeting of stockholders held on June 12.  Following the annual meeting of stockholders, the company’s board of directors approved the reverse stock split at the ratio of 1-for-20. 

SPCE Price Action: According to Benzinga Pro, Virgin Galactic ( SPCE ) shares are down 20.17% after-hours at 85 cents at the time of publication Wednesday.