Velo3D, Inc. (NYSE: VLD) recently announced the pricing of a $12 million public offering, causing its shares to tumble. The company disclosed that the offering consists of 34.28 million shares of common stock and warrants to purchase up to 34.28 million shares of common shares.
The securities were sold to new and existing institutional investors at an offering price of $0.35 per share, 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 after the date of issuance. The company expects the offering to close around April 12, 2024, subject to customary closing conditions.
Velo3D intends to use the net proceeds from the sale primarily for working capital and capital expenditures, as well as to repay senior secured notes due 2026. As of December 31, 2023, the company had cash and investments totaling $31 million. Investors interested in gaining exposure to the stock can consider investing in the 3D Printing (The) ETF (BATS: PRNT) and ARK Space Exploration & Innovation ETF (BATS: ARKX).
On Wednesday, VLD shares were down 40.14% at $0.2781 on last check
