Velo3D’s Stock Offering Results in a Slide in Shares: What Investors Need to Know

The offering of 34.28 million shares of common stock and warrants to purchase up to the same number of common shares by Velo3D, Inc. (NYSE: VLD) saw a drop in its shares following the announcement. The company sold the securities at an offering price of $0.35 per share, along with accompanying warrants, resulting 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 from the date of issuance.

Velo3D expects the offering to close around April 12, 2024, pending the fulfillment of customary closing conditions. The company intends to use the net proceeds from the sale for working capital, capital expenditures, and to repay senior secured notes due in 2026. As of December 31, 2023, Velo3D held cash and investments totaling $31 million.

Investors looking for exposure to VLD can consider investing in two ETFs: The 3D Printing (The) ETF (BATS: PRNT) and ARK Space Exploration & Innovation ETF (BATS: ARKX). As of Wednesday’s last check, VLD shares were down 40.14% at $0.2781.

Overall, investors should be aware that investing always carries risks and they should carefully consider their investment objectives before making any decisions regarding this or any other securities. It is also important to consult with a financial advisor before making any investment decisions.