Velo3D Announces Offering of $70 Million of Senior Secured Convertible Notes
Summary
CAMPBELL, Calif., Aug. 10, 2023 Velo3D, Inc. (NYSE: VLD) (Velo3D or the Company), a leading additive manufacturing technology company for mission-critical metal parts, today announced that it has entered into a securities purchase agreement with certain affiliated institutional investors (collectively, the Investor) for the purchase and sale of up to $105 million in aggregate principal amount of the Companys senior secured convertible notes (the Notes) in a registered direct offering (the Offering).The Company expects to issue $70 million in aggregate principal amount of the Notes (the Initial Notes) at the initial closing of the Offering on or about August 14, 2023 (the Initial Closing), subject to the satisfaction of customary closing conditions. The Company intends to use approximately $22 million of the net proceeds from the Offering to repay the outstanding indebtedness under its existing credit facility with Silicon Valley Bank and the remaining net proceeds for working capital, capital expenditures and general corporate purposes.The Notes will have an initial conversion rate of 475.1722 shares of the Companys common stock per $1,000 principal amount of the Notes (equivalent to an initial conversion price of approximately $2.10 per share of the Companys common stock). The companys solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control systemall of which are powered by Velo3Ds Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research.