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Metal 3D printer manufacturer Velo3D (NYSE: VLD) has announced the registration of up to 1,650,000 shares of its common stock.
As detailed in a recent Securities and Exchange Commission (SEC) Form S-3 filing, this registration is linked to “July 2024 Warrants,” issued as part of a private deal on July 1, 2024, connected to an amendment of the company’s senior secured notes due in 2026. These warrants allow stockholders to purchase shares at $3.00 each and are valid for five years once the registration is effective.
The registered shares are being offered by specific stockholders named in the prospectus, who have the option to sell them publicly or privately at market prices or negotiated terms. Importantly, Velo3D will not receive any money from these sales; the company will cover the costs associated with registering the shares, while the selling stockholders will handle any related commissions and discounts.
Stock listing and recent performance
Velo3D’s common stock is listed on the New York Stock Exchange (NYSE) under the symbol “VLD.” As of July 29, 2024, the last reported sales price of the stock was $2.89 per share. This listing underscores the company’s visibility and accessibility to various investors.
A few days before this, Velo3D received a noncompliance notice from the NYSE for failing to meet the $50 million minimum average market capitalization and stockholders’ equity requirement. As of July 5, 2024, its 30-day average market cap was $36.6 million, with a stockholder deficit of roughly $45.5 million.
The company said it will submit a compliance plan within 45 days, aiming for an 18-month cure period to regain NYSE compliance. In December 2023, Velo3D addressed another non-compliance issue by executing a 1-for-35 reverse stock split, which successfully restored compliance with the NYSE’s minimum stock price requirement.
Around the same time, Velo3D announced the resignation of CEO Benny Buller, who will continue to serve on the Board, and the appointment of Brad Kreger as Interim CEO. Concurrently, the company also disclosed a financial strategy to raise $18 million through a registered direct offering of shares and warrants.
AM companies file for stock offering
Velo3D is the latest in a long list of companies that have filed for stock offering. In February, Desktop Metal filed a prospectus for a mixed securities shelf offering of up to $250 million, as per a February 14, 2024 SEC Form S-3 filing.
This offering includes various securities, such as preferred stock, debt securities, warrants, units, and up to $75 million of class A common stock. The mixed shelf offering allows DM to issue these securities as needed over time, providing flexibility to raise capital under favorable market conditions.
Back in 2021, Belgian 3D printing bureau Materialise announced a registered public offering of four million American Depository Shares (ADSs) on the NASDAQ under the ticker “MTLS.” Each ADS represented one ordinary share. The offering was made via an effective shelf registration statement on Form F-3 filed with the SEC. JP Morgan Securities underwrote the offering, with an option to purchase an additional 600,000 ADSs.
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Featured image shows the Velo3D company logo. Image via Velo3D.
