Velo3D (NYSE: VLD), a leading metal additive manufacturing technology company for mission-critical parts, is raising $18 million to address it current financial challenges. The company entered into securities purchase agreements with an existing lender of the Company and new institutional investors for the purchase and sale of 36,000,000 shares of common stock and warrants to purchase up to an aggregate of 36,000,000 shares of common stock at an offering price of $0.50 per share and accompanying warrant.
The warrants are immediately exercisable at an exercise price of $0.565 per share and expire five years after the date of issuance.
Gross proceeds to the Company are expected to be approximately $18 million, before deducting placement agent fees and other estimated offering expenses. The Company intends to use the net proceeds from the offering for working capital, capital expenditures and general corporate purposes.
The closing of the offering is expected to occur on or about December 29, 2023, subject to the satisfaction of customary closing conditions. A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.
The securities described above are being offered under a shelf registration statement on Form S-3 (File No. 333-268346), originally filed with the Securities and Exchange Commission (the “SEC”) on November 14, 2022, which was declared effective by the SEC on November 21, 2022.
The offering is being made only using a written prospectus and accompanying prospectus supplement, forming a part of the effective registration statement.
The Company also has entered into a note amendment to the Secured Notes with the noteholders, under which (A) the Company will make a cash payment to the noteholders of $25.0 million to repay approximately $20.8 million of the aggregate principal amount of the Secured Notes, together with accrued and unpaid interest, and effective as of the completion of the Cash Payment, the Secured Notes will be amended to remove the requirement to redeem an aggregate of $8,750,000 of principal amount of Secured Notes for a repayment price of $10,500,000, plus accrued and unpaid interest, on January 1, 2024, and remove the requirement to maintain a minimum of $35.0 million of unrestricted cash and cash equivalents. The Company expects to make the Cash Payment on or about December 29, 2023.
