Velo3D raises $18 million

Velo3D – an American manufacturer of 3D metal printers, announced the acquisition of $18 million to meet current financial challenges. The company has entered into securities purchase agreements with an existing lender and new institutional investors to purchase and sell 36 million shares of common stock and warrants to purchase an aggregate of up to 36 million shares of common stock at an offering price of $0.50 per share.

The warrants are immediately exercisable at an exercise price of $0.565 per share and expire five years from the date of issuance. Velo3D’s gross proceeds are expected to be approximately $18 million, after intermediary fees and other estimated costs of carrying out the operation. The company intends to use the proceeds from the offering for working capital, capital expenditures and general corporate purposes. The offering is expected to close on December 29, 2023, subject to the satisfaction of customary closing conditions. A.G.P./Alliance Global Partners acts as the exclusive listing agent.

Velo3D has also entered into an amendment to the Note with the noteholders pursuant to which it will make a cash payment to holders of the Notes in the amount of $25.0 million to repay approximately $20.8 million in aggregate principal amount of the Secured Notes, together with accrued and unpaid interest and effective from the completion of the Cash Payment. The Covered Notes will be amended to remove the requirement to redeem the aggregate principal amount of $8.75 million of the Covered Notes for a repayment price of $10.5 million plus accrued and unpaid interest on January 1, 2024 and eliminate the requirement to maintain unrestricted cash and equivalents of at least USD 35 million. The company expects to make the cash payment on or about December 29, 2023.


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