Velo3D, Inc. Enters Debt Amendment Agreement with Existing Note Holder
28 Diciembre 2023 - 6:51AM
Business Wire
Velo3D, Inc. (NYSE: VLD) (the “Company” or “Velo3D”), a leading
metal additive manufacturing technology company for
mission-critical parts, today announced it has entered into a note
amendment (the “Note Amendment”) to the Company’s senior secured
notes due 2026 (the “Secured Notes”) with the note holders. The
Note Amendment was entered into concurrently with the Company’s
recently announced registered direct equity offering.
Pursuant to the Note Amendment (A) the Company will make a cash
payment to the note holders of $25.0 million to repay approximately
$20.8 million of aggregate principal amount of the Secured Notes,
together with accrued and unpaid interest (the “Cash Payment”), and
(B) effective as of the completion of the Cash Payment, the Secured
Notes will be amended to, among other things, (i) remove the
requirement to redeem an aggregate of $8,750,000 of principal
amount of Secured Notes for a repayment price of $10,500,000, plus
accrued and unpaid interest, on January 1, 2024, and (ii) remove
the requirement to maintain a minimum of $35.0 million of
unrestricted cash and cash equivalents. The Company expects to make
the Cash Payment from its existing available cash on or about
December 29, 2023.
“Since my appointment to Chief Executive Officer, we have
implemented a comprehensive strategy to improve our cash flow and
profitability, expand margins, rebuild our backlog and strengthen
our pipeline of new business,” said Brad Kreger, CEO of Velo3D. “In
addition to expense reductions, we have focused on optimizing our
supply chain as well as implemented new sales and customer service
strategies that position us well for 2024. Additionally, we have
improved our liquidity and strengthened our balance sheet with the
support of the secured note holders, who have agreed to amend
certain terms of the existing debt, including the schedule of our
debt payments. Also, the note holders have demonstrated their
support of the Company by agreeing to make a $5 million equity
investment in the Company as part of the $18 million registered
direct equity offering we announced today. We expect the
combination of our operational changes, debt relief and additional
equity investment will provide the company with the resources
needed to successfully implement and execute our business
initiatives and strategic review process, both of which we firmly
believe will result in the enhancement of shareholder value.”
A.G.P./Alliance Global Partners acted as exclusive financial
advisor to the Company in connection with the Note Amendment.
About Velo3D:
Velo3D is a metal 3D printing technology company. 3D
printing—also known as additive manufacturing (AM)—has a unique
ability to improve the way high-value metal parts are built.
However, legacy metal AM has been greatly limited in its
capabilities since its invention almost 30 years ago. This has
prevented the technology from being used to create the most
valuable and impactful parts, restricting its use to specific
niches where the limitations were acceptable.
Velo3D has overcome these limitations so engineers can design
and print the parts they want. The company’s 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. Using
Velo3D, these customers can now build mission-critical metal parts
that were previously impossible to manufacture. The fully
integrated solution includes the Flow print preparation software,
the Sapphire family of printers, and the Assure quality control
system—all of which are powered by Velo3D’s 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. Velo3D
has been named as one of Fast Company’s Most Innovative Companies
for 2023.
Forward-Looking Statements:
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1996. The Company’s actual
results may differ from its expectations, estimates and projections
and consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect”,
“estimate”, “project”, “budget”, “forecast”, “anticipate”,
“intend”, “plan”, “may”, “will”, “could”, “should”, “believes”,
“predicts”, “potential”, “continue”, and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, statements
regarding the Company’s comprehensive strategy to improve its
operations, the Company’s strategic review process, the timing of
the Cash Payment and the Company’s other expectations, hopes,
beliefs, intentions, or strategies for the future. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. You should carefully consider
the risks and uncertainties described in the documents filed by the
Company from time to time with the Securities and Exchange
Commission. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Most of these factors are outside the Company’s control
and are difficult to predict. The Company cautions not to place
undue reliance upon any forward-looking statements, including
projections, which speak only as of the date made. The Company does
not undertake or accept any obligation to release publicly any
updates or revisions to any forward-looking statements to reflect
any change in its expectations or any change in events, conditions,
or circumstances on which any such statement is based.
Velo, Velo3D, Sapphire, and Intelligent Fusion, are registered
trademarks of Velo3D, Inc. Without Compromise, Flow and Assure, are
trademarks of Velo3D, Inc.
All Rights Reserved © Velo3D, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20231228270490/en/
Media Contact: Dan Sorensen, Senior Director of Public Relations
press@velo3d.com
Investor Relations: Bob Okunski, VP Investor Relations
investors@velo3d.com
Velo3D (NYSE:VLD)
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