FREMONT, Calif. - Velo3D, Inc. (NYSE: VLD), a prominent additive manufacturing technology company, announced the pricing of its public offering of shares and warrants, with the closing expected around April 12, 2024. The offering includes 34,285,715 shares of common stock and equal warrants to purchase additional shares at $0.35 each, aiming to raise approximately $12 million before fees and expenses.
The warrants, exercisable immediately at the same price per share, will expire five years from issuance. Velo3D plans to allocate the net proceeds to working capital, capital expenditures, general corporate purposes, repayment of senior secured notes due in 2026, and other permitted debts.
A.G.P./Alliance Global Partners (NYSE:GLP) is the sole placement agent for the offering, based on a reasonable best-efforts arrangement. The offering is pursuant to a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on November 21, 2022.
Velo3D focuses on metal 3D printing technology, aiming to expand the capabilities of additive manufacturing. The company's technology is utilized in industries such as space exploration, aviation, and energy, offering a fully integrated solution including software, printers, and a quality control system.
This offering follows the standard regulatory guidelines, and the company has cautioned against relying on forward-looking statements due to risks and uncertainties that could cause actual results to differ. Factors influencing such outcomes include competition, growth management, relationships with customers and suppliers, compliance with indebtedness, and broader economic and competitive factors.
InvestingPro Insights
Velo3D, Inc. (NYSE: VLD) is navigating a challenging period, reflected in its recent public offering of shares and warrants. The company's proactive approach to raising capital underscores its need for liquidity, as it aims to support various corporate endeavors and obligations. Investors considering Velo3D's financial health and future prospects should note the following data and insights from InvestingPro.
InvestingPro Data shows a market capitalization of $121.59 million, which is relatively modest, suggesting that the company is a smaller player within its industry. With a negative Price/Earnings (P/E) ratio of -0.93 for the last twelve months as of Q4 2023, Velo3D is not currently generating a profit, a trend analysts do not expect to change this year. The company's gross profit margin stands at a concerning -33.92%, indicating that it struggles to retain earnings from its revenue.
InvestingPro Tips highlight that Velo3D is quickly burning through cash, which aligns with its need to secure additional funding through the public offering. Additionally, the stock has experienced significant volatility, with a price total return of -22.18% over the last week, though it has seen a strong return of 23.38% over the last month. This volatility may be of interest to certain investors who specialize in high-risk opportunities.
For those interested in a deeper analysis, there are 19 additional InvestingPro Tips available for Velo3D, which can be found at https://www.investing.com/pro/VLD. These tips provide further insights into the company's performance and outlook. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to comprehensive financial data and expert analysis to inform investment decisions.
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