Metal 3D printing company Velo3D (NYSE: VLD) has announced a series of developments including leadership changes, financial adjustments, and NYSE non-compliance notice.
Benny Buller, former Chief Executive Officer of Velo3D, has resigned from his position at the request of the Board of Directors but will continue as a member of the Board. Simultaneously, the company is venturing into a financial initiative to raise $18 million through a registered direct offering of shares and warrants. This move involves securities purchase agreements with both an existing lender and new investors. However, amidst these changes, Velo3D has received a non-compliance notice from the New York Stock Exchange (NYSE), signaling a need for regulatory adjustments.
Velo3D transitions leadership
Following Buller’s resignation, the Board has appointed Brad Kreger as Interim CEO, given Kreger’s experience at Velo3D as Executive Vice President of Operations, since December 2022, and overseeing manufacturing operations at various companies in the past. Meanwhile, the company has initiated a search for a permanent CEO. Velo3D is also undertaking a strategic business review to assess options, including strategic transactions, potential mergers, business combinations, or a sale, to maximize shareholder value.
Under Buller’s leadership, Velo3D saw several business developments and product launches. For instance, Austrian oil and gas firm Schoeller-Bleckmann Oilfield Technology (SBOT) acquired Velo3D’s Sapphire XC 3D printer to meet the increasing demand for 3D printed parts. The Sapphire XC 3D printer offers SBOT unparalleled geometric design flexibility, enabling the precise and efficient production of intricate, mission-critical components.
Last year in March, Velo3D unveiled Flow 5.0, its upgraded print preparation software. This integrated solution introduces user-selectable core parameters, providing engineers with improved control overbuilds. It allows the allocation of different parameters to specific parts on the build plate, enhancing control over the final material properties of 3D printed components.
Despite encountering shipping delays in November 2022, Velo3D reported a significant revenue growth of 119.5% in Q3 2022, reaching $19.1 million. While this marked a substantial increase from Q3 2021’s $8.7 million, it reflects a 2.6% decline compared to Q2 2022’s $19.6 million. The year-on-year growth was fueled by heightened system sales and a favorable product mix, boosting the average sale. However, sequential quarterly challenges were faced due to shipping issues.
“I want to thank Benny for his tireless efforts over the last nine years from founding the company to making Velo3D the technology leader in the rapidly growing additive manufacturing industry,” said Carl Bass, Chairman of the Board of Velo3D. “We are incredibly grateful to Benny for all his contributions. However, given the current environment, the Board believed a change would best position the company for future success. We look forward to continuing to benefit from Benny’s experience at the board level as we execute on our strategic technology and profitability initiatives.”
A financial boost with a registered direct offering
Following the leadership changes, Velo3D announced plans to raise $18 million through a registered direct offering, selling 36 million shares and warrants at $0.50 each, exercisable at $0.565. The company entered into securities purchase agreements with an existing lender and new investors to enhance working capital, capital expenditures, and general corporate goals. The offering which was expected to close by December 29, 2023, is subject to standard conditions, with A.G.P./Alliance Global Partners (AGP) as the sole placement agent.
Additionally, Velo3D also announced a cash payment of $25 million to noteholders, repaying approximately $20.8 million of Secured Notes principal and accrued interest. The company has also amended the Secured Notes, removing certain redemption requirements and cash maintenance obligations. These moves are part of the company’s strategy to strengthen its financial position, says Velo3D.
Away from Velo3D, other companies also walked the same road in the past. In 2021, Nano Dimension disclosed a $332.5 million direct share offering, bringing the company’s total raised funds to $1 billion. A while before this, Nano Dimension secured $35.9 million through a separate direct stock offering. The raised proceeds from this offering were designated for working capital and “other general corporate and operational purposes.”
German 3D printer manufacturer voxeljet announced a $12 million registered direct offering, following its $10 million registered direct offering of ordinary shares. Priced at $26.95 per share, facilitated by AGP, voxeljet’s offering involved the sale of 443,414 ordinary shares as American Depository Receipts (ADRs).
Velo3D receives non-compliance notice from NYSE
Adding to the news, Velo3D revealed on December 28, 2023, that it was notified by NYSE regarding non-compliance with the minimum average closing stock price over 30 consecutive trading days. While this doesn’t trigger an immediate delisting, Velo3D planned on informing the NYSE within 10 days of its strategy to regain compliance.
The company has a six-month cure period, aiming to achieve an average closing stock price of $1.00 or more, on the last trading day of any month during this period. Velo3D made its debut on NYSE in 2021, and intends to stay listed on the NYSE and may consider options like a reverse stock split, subject to stockholder approval, to meet compliance requirements.
What does the future of 3D printing for the next ten years hold?
What engineering challenges will need to be tackled in the additive manufacturing sector in the coming decade?
To stay up to date with the latest 3D printing news, don’t forget to subscribe to the 3D Printing Industry newsletter or follow us on Twitter, or like our page on Facebook.
While you’re here, why not subscribe to our Youtube channel? Featuring discussion, debriefs, video shorts, and webinar replays.
Are you looking for a job in the additive manufacturing industry? Visit 3D Printing Jobs for a selection of roles in the industry.
Featured image shows Velo3D company logo. Image via Velo3D.
