Why Velo3D Stock Is Tumbling Thursday

Velo3D Inc VLD shares are trading lower Thursday after the company announced a registered direct offering.

What Happened: Velo3D said it entered into securities purchase agreements with an existing lender of the company and new institutional investors for the purchase and sale of 36 million shares and warrants to purchase up to 36 million shares at an offering price of 50 cents per share.

The warrants are immediately exercisable for $0.565 per share and are set to expire five years after the date of issuance.

Velo3D anticipates gross proceeds of approximately $18 million. Net proceeds will be used for working capital, capital expenditures and general corporate purposes. The offering is expected to close on or about Dec. 29.

Velo3D also entered into a note amendment for the company's senior secured notes due 2026 concurrently with the company's registered direct offering.

"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."

See Also: What's Going On With Alibaba Stock Thursday?

VLD Price Action: Velo3D shares were down 22.8% at $0.4875 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.