FREMONT, Calif. - Velo3D, Inc. (NYSE: VLD), a metal 3D printing technology firm, announced plans for a public offering of its common stock and warrants to purchase additional shares. The company's move is contingent on market conditions, and there is no certainty regarding the completion or specifics of the offering.
The proceeds from the sale are intended for general corporate purposes, which include working capital, capital expenditures, and the repayment of senior secured notes due in 2026 along with other debts.
A.G.P./Alliance Global Partners (NYSE:GLP) has been appointed as the sole placement agent for the offering, operating on a "reasonable best efforts" basis.
The offering will be conducted under a shelf registration statement that was declared effective by the U.S. Securities and Exchange Commission (SEC) on November 21, 2022. Details of the offering will be available in a prospectus supplement and accompanying base prospectus filed with the SEC.
Velo3D is recognized for its advancements in overcoming the limitations of legacy metal additive manufacturing, enabling the production of mission-critical parts for industries such as space exploration, aviation, and energy. The company's solution comprises software, printers, and a quality control system, all powered by their Intelligent Fusion manufacturing process.
This announcement does not constitute a sale or offer to buy securities in any jurisdiction where such activities would be unlawful without registration or qualification under the applicable securities laws.
The company's forward-looking statements indicate plans for the offering, but actual results could differ due to various risks and uncertainties. These include operational challenges, market conditions, regulatory changes, and the impact of the global COVID-19 pandemic.
The information in this article is based on a press release statement from Velo3D, Inc.
InvestingPro Insights
As Velo3D, Inc. (NYSE: VLD) navigates the prospect of a public offering, their financial health and market performance are crucial for potential investors. According to recent data from InvestingPro, Velo3D has a market capitalization of $120.38 million, but the company's financials reflect some challenges.
Notably, the company's revenue has seen a decline, with a -1.6% change over the last twelve months as of Q4 2023 and a significant quarterly drop of -93.92% in Q4 2023. Additionally, the company's gross profit margin stands at -33.92%, indicating that it's currently operating at a loss.
These financial metrics are mirrored by some of the InvestingPro Tips, which highlight that analysts do not expect the company to be profitable this year and have revised their earnings downwards for the upcoming period. The stock has also experienced high price volatility, with a notable -19.19% one-week total return but a positive 23.38% return over the last month as of the 100th day of 2024.
Investors considering participating in the offering should be aware of these factors, especially the company's quick cash burn and weak gross profit margins. However, it's also worth noting that Velo3D's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term.
For those looking for a deeper analysis, InvestingPro offers additional insights, with a total of 19 InvestingPro Tips available for Velo3D. To access these tips and more detailed analytics, visit https://www.investing.com/pro/VLD and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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