Velo3D Inc. Announces $12 Million Public Offering, Shares Experience 40% Drop on Wednesday

On Wednesday, Velo3D, Inc. (NYSE: VLD) experienced a drop in its shares following the announcement of a $12 million public offering. The company revealed the pricing of 34.28 million shares of common stock and warrants to purchase up to the same number of common shares.

The securities were sold to both new and existing institutional investors at an offering price of $0.35 per share, along with accompanying warrants. This resulted in gross proceeds of approximately $12 million, before deducting placement agent fees and other offering expenses. The warrants are immediately exercisable at a price of $0.35 per share and will expire five years from the date of issuance.

Velo3D anticipates the offering to close around April 12, 2024, pending the fulfillment of customary closing conditions. The company intends to use the net proceeds from the sale for working capital, capital expenditures, and to repay senior secured notes due in 2026. As of December 31, 2023, the company held cash and investments totaling $31 million.

Investors looking to get exposure to VLD can consider two exchange-traded funds (ETFs) – The 3D Printing ETF (BATS: PRNT) and ARK Space Exploration & Innovation ETF (BATS: ARKX). As of Wednesday’s last check, VLD shares were down 40.14% at $0.2781.

It’s important for investors to carefully evaluate their investment options before making any decisions based on this information alone.

Velo3D has been developing metal additive manufacturing technology that enables faster production times and lower costs compared to traditional manufacturing methods. The company’s technology is used in industries such as aerospace, automotive, medical devices, and consumer goods.

The public offering by Velo3D will allow it to raise more capital for its operations and potentially accelerate its growth trajectory in these industries.

Investors who are interested in investing in Velo3D or related technologies should do their own research on the company’s financial performance, competitive landscape, market opportunities