After a period of skyrocketing growth, metal 3D printer hardware company Velo3D has been experiencing challenges in the past few months that have brought down stock value to around $.5 and saw many key people leaving the company. While the company’s business remains sound and its technology solid, like many other pure player 3D printing companies, Velo3D cannot yet assure that kind of rapid exponential growth that investors, especially Wall Street investors, require. So now founder and current CEO Benny Buller is stepping down as CEO of Velo3D and the Board of Directors is commencing a strategic business review process to explore alternatives to maximize shareholder value.
This decision is not entirely unexpected. The last time VoxelMatters spoke with Mr. Buller at Formnext he confided that he is not a businessman as much as he is an engineer. He invented the technology and built the company. Now it’s time to step down as CEO, while remaining part of Velo3D on the Board of Directors. Brad Kreger, EVP of Operations, has been appointed as interim CEO, effective December 18, 2023.
“I want to thank Benny for his tireless efforts over the last nine years from founding the company to making Velo3D the technology leader in the rapidly growing additive manufacturing industry,” said Carl Bass, Chairman of the Board of Velo3D. “We are incredibly grateful to Benny for all his contributions. However, given the current environment, the Board believed a change would best position the company for future success. We look forward to continuing to benefit from Benny’s experience at the board level as we execute on our strategic technology and profitability initiatives.”
Mr. Kreger has been Executive Vice President of Operations at Velo3D since December of 2022. Before Velo3D, he held various executive positions overseeing, and rapidly scaling, manufacturing operations at several early and mid-stage companies including tenures at Affymetrix, Thermo Fisher Scientific, and Fluidigm Corporation. The company has also commenced a search for a permanent CEO.
Additionally, the Board of Directors has commenced a strategic business review process to explore alternatives in order to maximize shareholder value. This is remindful of voxeljet’s recently announced efforts as both companies try to grow stock value in order to continue to be listed on US indexes. Potential strategic alternatives to be explored or evaluated may include but are not limited to, a strategic transaction, potential merger, business combination or sale.
There can be no assurance that Velo3D’s strategic business review process will result in any transaction or other strategic outcome. The company does not expect any impact on its operations or its ability to serve its customers during the review process. Velo3D said that it remains committed to driving strategic value for its customers, employees, partners and shareholders. The company does not intend to disclose further developments on this strategic review process unless and until it determines that such disclosure is appropriate or necessary.
