Velo3D Takes Bold Step with Debt for Equity Exchange to Strengthen Financial Position
On December 24, 2024, Velo3D, Inc., a prominent player in the field of scalable metal 3D printing technologies, unveiled a strategic transaction designed to bolster its financial standing. The company announced a debt-for-equity exchange with Arrayed Notes Acquisition Corp., resulting in the cancellation of approximately $22.4 million, or 81.7%, of its senior secured notes. This move includes an additional cancellation of about $369 thousand in accrued interest, all in exchange for 185,151,333 newly issued shares of Velo3D's common stock to the Holder. Following this transaction, Arrayed Notes will retain around $5 million in outstanding senior secured notes. This significant equity restructuring means that Arrayed Notes will hold a commanding 95% of Velo3D’s total common stock, while shares not under its control will remain publicly traded on the OTCQX platform.
In tandem with these financial adjustments, Arun Jeldi, the CEO of Arrayed Additive, the parent company of the Holder, will also step into the role of CEO at Velo3D, in addition to joining the company's Board of Directors. The changes in stewardship will see a reduction of Velo3D's board from ten to five members. Notably, several board members, including Carl Bass and Ellen Smith, have resigned in connection with this transaction, paving the way for new leadership to guide the company forward. Although several directors will depart, Brad Kreger will continue as the Chief Operating Officer, ensuring organizational continuity.
The significance of this debt cancellation cannot be understated, as it substantially alleviates Velo3D’s financial burden and enables the company to redirect its focus on expanding its operations. Brad Kreger expressed optimism about the future, stating, "I am excited to work with Arun and the Arrayed Additive team to reposition the company for future success. With the majority of our senior secured notes cancelled, we are now in a stronger financial position."
Arun Jeldi, now at the helm of Velo3D, emphasized that the partnership will enable the two companies to leverage their strengths, particularly in the defense, aerospace, and technology markets. He commented, "Velo3D's industry-leading technology complements Arrayed Additive's focus on lightweight precision manufacturing, which uses magnesium and aluminum alloys. Together, we aim to significantly enhance our service offerings to customers."
Velo3D specializes in transforming conventional manufacturing through its advanced 3D printing solutions. Since unveiling its first Sapphire system in 2018, it has formed valuable partnerships with major players in various industries, such as SpaceX, Lockheed Martin, and General Motors. Recognized as one of Fast Company's Most Innovative Companies for 2023, Velo3D is well positioned to deliver unmatched capabilities in large-format metal 3D printing.
As the company transitions into this new chapter, it remains committed to utilizing its innovative technologies and expertise to serve customers across high-value sectors. The restructuring aligns with its mission to offer high-performance solutions for demanding applications in aerospace, energy, and beyond.
Investors and stakeholders may note that while Velo3D anticipates positive developments stemming from this financial realignment, the company acknowledges various risks and uncertainties which may impact its future performance. Forward-looking statements made during this announcement encompass intentions regarding liquidity, capital requirements, and strategic initiatives. Thus, those interested should be aware of the broader market landscape and factors that could influence Velo3D's trajectory moving forward.
The company's progress and innovations can be tracked through their official website and social media channels, providing real-time updates on their endeavors in revolutionizing manufacturing processes in the 3D printing landscape.
In tandem with these financial adjustments, Arun Jeldi, the CEO of Arrayed Additive, the parent company of the Holder, will also step into the role of CEO at Velo3D, in addition to joining the company's Board of Directors. The changes in stewardship will see a reduction of Velo3D's board from ten to five members. Notably, several board members, including Carl Bass and Ellen Smith, have resigned in connection with this transaction, paving the way for new leadership to guide the company forward. Although several directors will depart, Brad Kreger will continue as the Chief Operating Officer, ensuring organizational continuity.
The significance of this debt cancellation cannot be understated, as it substantially alleviates Velo3D’s financial burden and enables the company to redirect its focus on expanding its operations. Brad Kreger expressed optimism about the future, stating, "I am excited to work with Arun and the Arrayed Additive team to reposition the company for future success. With the majority of our senior secured notes cancelled, we are now in a stronger financial position."
Arun Jeldi, now at the helm of Velo3D, emphasized that the partnership will enable the two companies to leverage their strengths, particularly in the defense, aerospace, and technology markets. He commented, "Velo3D's industry-leading technology complements Arrayed Additive's focus on lightweight precision manufacturing, which uses magnesium and aluminum alloys. Together, we aim to significantly enhance our service offerings to customers."
Velo3D specializes in transforming conventional manufacturing through its advanced 3D printing solutions. Since unveiling its first Sapphire system in 2018, it has formed valuable partnerships with major players in various industries, such as SpaceX, Lockheed Martin, and General Motors. Recognized as one of Fast Company's Most Innovative Companies for 2023, Velo3D is well positioned to deliver unmatched capabilities in large-format metal 3D printing.
As the company transitions into this new chapter, it remains committed to utilizing its innovative technologies and expertise to serve customers across high-value sectors. The restructuring aligns with its mission to offer high-performance solutions for demanding applications in aerospace, energy, and beyond.
Investors and stakeholders may note that while Velo3D anticipates positive developments stemming from this financial realignment, the company acknowledges various risks and uncertainties which may impact its future performance. Forward-looking statements made during this announcement encompass intentions regarding liquidity, capital requirements, and strategic initiatives. Thus, those interested should be aware of the broader market landscape and factors that could influence Velo3D's trajectory moving forward.
The company's progress and innovations can be tracked through their official website and social media channels, providing real-time updates on their endeavors in revolutionizing manufacturing processes in the 3D printing landscape.
Topics Consumer Technology）
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