Velo3D Announces Closing of $12 Million Public Offering

Rhea-AI Summary

Velo3D, a leading additive manufacturing technology company, closed a $12 million public offering of common stock and warrants, with gross proceeds of approximately $12 million. The offering included 34,285,715 shares of common stock at $0.35 per share, with warrants to purchase up to the same number of shares. The warrants are exercisable at $0.35 per share and expire five years after issuance. A.G.P./Alliance Global Partners acted as the sole placement agent for the offering.

Market Research Analyst

The closing of Velo3D's public offering is a significant event that suggests a strategic move to strengthen the company's balance sheet. In the context of additive manufacturing, such a cash infusion can be pivotal for advancing technology development, scaling operations, or even funding further research. Moreover, the issuance of additional shares can dilute current shareholders but may also attract new investors looking for entry points into innovative manufacturing spaces.

Investors and analysts must weigh the potential for technological breakthroughs against the risk of share dilution. Given the competitive landscape of additive manufacturing, Velo3D's capital raise could be a necessary step to maintain its edge. Stakeholders should keep an eye on how effectively this new capital is deployed and whether it translates into increased market share or technological advancements.

Financial Analyst

The exercise price of the warrants being equal to the offering price indicates Velo3D's assessment of its value proposition. It's important for potential investors to analyze the use of proceeds, as this could be telling of the company's future growth plans. The financing route through a public offering, as opposed to private placement or debt, suggests Velo3D seeks to maintain a specific capital structure, possibly to avoid additional interest obligations or to bring on a broader investor base.

When examining such financial moves, one should scrutinize the after-effect of the offering's expenses on the net proceeds, further evaluating how this aligns with the company's projected cash burn rate and runway. Stakeholders must keep a close watch on the subsequent quarterly results to understand the impact of this offering on the company's financial health, especially in terms of earnings per share and return on equity.

Legal Expert

From a legal standpoint, the completion of the offering in accordance with the SEC’s regulations is crucial; it signals compliance and transparency, factors that are inherently reassuring for investors. Since the offering was conducted under an effective shelf registration statement, it indicates that Velo3D is positioned to take advantage of fundraising opportunities swiftly. This legal agility can be an advantage in fast-moving markets.

Investors should be aware of the regulatory environment surrounding such offerings, including the limitations and disclosures required. Understanding these legal intricacies can provide insight into the company's governance quality and its management’s foresight in navigating the complex landscape of securities law.

FREMONT, Calif.--(BUSINESS WIRE)-- Velo3D, Inc. (NYSE: VLD) (the “Company”), a leading additive manufacturing technology company for mission-critical metal parts, today announced the closing of its previously announced “reasonable best efforts” public offering of 34,285,715 shares of common stock and warrants to purchase up to 34,285,715 shares of common stock at an offering price of $0.35 per share and accompanying warrant for aggregate gross proceeds of approximately $12 million, before deducting placement agent fees and other offering expenses. The warrants are immediately exercisable at an exercise price of $0.35 per share and expire five years after the date of issuance.

A.G.P./Alliance Global Partners acted as the sole placement agent for the offering on a reasonable best-efforts basis.

This offering was being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-2268346) previously filed with the U.S. Securities and Exchange Commission (the “SEC”), which was declared effective by the SEC on November 21^st, 2022. The final prospectus supplement and accompanying prospectus were filed with the SEC and are available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Velo3D:

Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable.

Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research.

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW, FLOW DEVELOPER, and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

Forward-Looking Statements:

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The Company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the Company’s other expectations, hopes, beliefs, intentions, or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K”), which was filed by the Company with the SEC on April 3, 2024 and the other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the Company to execute its business plan, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) the period over which the company anticipates its existing cash and cash equivalents will be sufficient to fund its operating expenses and capital expenditure requirements and the company’s ability to continue as a going concern; (3) the Company’s ability to service and comply with its indebtedness; (4) the Company’s ability to satisfy New York Stock Exchange Listing rules; (5) changes in the applicable laws or regulations; (6) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (7) the lingering effects of the global COVID-19 pandemic; and (8) other risks and uncertainties indicated from time to time described under the “Risk Factors” sections included in the Company’s Form 10-K, the final prospectus supplement for the offering and in the Company’s other filings with the SEC. The Company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240412827307/en/

Media Contact:

Dan Sorensen, Senior Director of Public Relations

press@velo3d.com

Investor Relations:

Bob Okunski, VP Investor Relations

investors@velo3d.com

Source: Velo3D, Inc.

FAQ

What is the offering price of Velo3D's common stock?

The offering price of Velo3D's common stock is $0.35 per share.

How many shares were included in Velo3D's public offering?

Velo3D's public offering included 34,285,715 shares of common stock.

Who acted as the sole placement agent for Velo3D's offering?

A.G.P./Alliance Global Partners acted as the sole placement agent for Velo3D's offering.

What is the expiration period for the warrants included in Velo3D's offering?

The warrants included in Velo3D's offering expire five years after the date of issuance.