Velo3D has announced that it was notified on December 28, 2023 by the New York Stock Exchange (NYSE) that the company is not in compliance with Rule 802.01C of the NYSE’s Listed Company Manual, relating to the minimum average closing price of the company’s common stock required over a consecutive 30 day period.
The notice does not result in the immediate delisting of the company’s common stock from the NYSE.
The company can regain compliance at any time within the six-month cure period if, on the last day of any calendar month during the period, the common stock has a closing share price of at least 1.00 USD and an average closing share price of at least 1.00 USD over the 30 trading-day period ending on the last trading day of that month.
Velo3D says it intends to notify the NYSE within 10 business days of its intent to regain compliance with Rule 802.01C. The company says it full intends to remain listed on the NYSE, and will consider the best available alternatives, including, but not limited to, a reverse stock split, subject to stockholder approval, if necessary to regain compliance.
A reverse stock split consolidates existing shares of corporate stock into fewer, proportionally more valuable shares.
In December 2023, less than two weeks before Velo3D received the notice from the NYSE, Benny Buller stepped down as CEO of the company at the request of the Board of Directors. Buller founded Velo3D in 2014, and will remain on the company’s board. Brad Kreger, Velo3D’s EVP of Operations, has been appointed Interim CEO as the company commences its search for a permanent replacement.
With the stepping down of Buller, Velo3D commenced a strategic business review process to explore strategic alternatives that may include, but are not limited to, a strategic transaction, potential merger, business combination or sale.
Desktop Metal also received a non-compliance notice from the NYSE in November 2023. Markforged received its first non-compliance notice in April 2023, and received another in November 2023 after falling foul of the rule for a second time. Markforged then announced it would consider a reverse stock split.
