Velo3D, Inc. Receives Continued Listing Standards Notice from the NYSE

Rhea-AI Summary

Velo3D (NYSE: VLD), a leading additive manufacturing technology company, announced it received a notice of non-compliance from the NYSE on July 8, 2024. The company did not meet the NYSE's listing standards, with a 30-day average market capitalization below $50 million and stockholders' equity also under $50 million. As of July 5, 2024, Velo3D's market capitalization was approximately $36.6 million, and as of March 31, 2024, the stockholders' deficit was approximately ($45.5) million. Velo3D plans to submit a compliance plan to the NYSE within 45 days. If accepted, the stock will remain listed during an 18-month cure period. The notice does not impact the current listing or SEC reporting obligations. The company also met the NYSE's minimum stock price requirement as of June 28, 2024.

Positive

• The company's stock price is above the NYSE's minimum requirement of $1 based on a 30 trading-day average as of June 28, 2024.

Negative

• Velo3D's 30-day average market capitalization was approximately $36.6 million as of July 5, 2024, below the NYSE's $50 million requirement.
• The company's stockholders' deficit was approximately ($45.5) million as of March 31, 2024.

Financial Analyst

The notice from the NYSE indicates that Velo3D, Inc. is not in compliance with certain listing standards, primarily due to a market capitalization falling below $50 million over a consecutive 30-day period. This non-compliance signals financial instability, highlighted by the company’s stockholders' equity deficit of ($45.5) million as of March 31, 2024. The company's plan to address this issue within 45 days reflects an intent to regain compliance, but it brings uncertainty to investors.

Short-term Impact: The notice does not immediately affect the stock's listing, providing some relief to investors. However, the company’s financial health remains a concern, likely leading to increased market volatility and investor skepticism in the short term.

Long-term Impact: Successfully regaining compliance could stabilize the stock, but it requires significant financial restructuring or capital inflow. Investors should monitor the company’s strategic actions closely over the next 18 months, as failure to comply could result in delisting, significantly impacting share value.

Market Cap: This is the total value of a company's outstanding shares of stock. For retail investors, a market cap below $50 million suggests the company is relatively small and potentially more volatile compared to larger firms.

In summary, while the immediate impacts are contained, the company’s ability to implement its compliance plan will be critical for its long-term financial health and stock performance.

Market Research Analyst

From a market perspective, the NYSE compliance notice places Velo3D’s future listing status in a precarious position, affecting investor confidence. This notice suggests the market does not currently see strong value or future potential in the company, highlighted by its market cap of around $36.6 million. Such perceptions can create a self-fulfilling prophecy, where investor sentiment drives further decline in stock price.

Industry Context: Velo3D operates in the additive manufacturing sector, which involves producing complex metal parts for critical applications. While the industry holds potential, it is also highly competitive and capital-intensive, often requiring substantial R&D investment and strong market confidence to thrive.

Strategic Implications: The company's plan to address the compliance issue must convincingly demonstrate a trajectory towards financial stability and growth. This could involve raising new capital, restructuring operations, or finding strategic partners. Positive developments in these areas could restore market confidence and potentially improve the stock's valuation.

For retail investors, monitoring the company’s upcoming strategic decisions and market reactions will be key. Any indications of strong recovery actions could be promising, but the risk remains high until the company shows clear signs of achieving compliance and financial stability.

FREMONT, Calif.--(BUSINESS WIRE)-- Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced that on July 8, 2024 it received notice from the New York Stock Exchange (“NYSE”) that it is not in compliance with Section 802.01B of the NYSE Listed Company Manual because its average total market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its stockholders' equity was less than $50 million. As of July 5, 2024, the company’s 30 trading-day average market capitalization was approximately $36.6 million and its last reported stockholders’ deficit, as of March 31, 2024, was approximately ($45.5) million.

In accordance with NYSE procedures, within 45 days from receipt of the notice, the company intends to submit a plan to the NYSE advising it of the definitive action(s) the company has taken, is taking, or plans to take to regain compliance with the continued listing standards. If the NYSE accepts the company’s plan, the company’s common stock will continue to be listed and traded on the NYSE during the 18-month cure period, subject to the company’s compliance with other NYSE continued listing standards and continued periodic review by the NYSE of the company’s progress with respect to its plan.

The notice has no immediate impact on the listing of the company’s common stock and does not affect the company’s reporting obligations with the U.S. Securities and Exchange Commission.

In addition, in a separate letter dated June 28, 2024, the NYSE confirmed that a calculation of the company’s average stock price for the 30 trading days ended June 28, 2024, indicated that the company’s stock price was above the NYSE’s minimum requirement of $1 based on a 30 trading-day average. Accordingly, as of June 28, 2024, the Company was no longer considered below the $1 continued listing criterion.

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 manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Aerojet Rocketdyne, Lockheed Martin, Avio, and General Motors. Velo3D has been named as one of Fast Company’s Most Innovative Companies for 2023. For more information, please visit Velo3D.com, or follow the company on LinkedIn or X (formerly known as Twitter).

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

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 ability to regain or maintain compliance with NYSE continued listing standards and the company’s other expectations, 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 “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “FY 2023 10-K”), which was filed by the company with the SEC on April 3, 2024, and the company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, which was filed by the company with the SEC on May 15, 2024, and the other documents filed by the company from time to time with the SEC. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240712747847/en/

Investor Relations:

Velo3D

Bob Okunski, VP Investor Relations

investors@velo3d.com

Media Contact:

Velo3D

Dan Sorensen, Senior Director of PR

press@velo3d.com

Source: Velo3D, Inc.

FAQ

What notice did Velo3D (NYSE: VLD) receive from the NYSE on July 8, 2024?

Velo3D received a notice of non-compliance with NYSE's listing standards due to its market capitalization and stockholders' equity being below $50 million.

How did Velo3D (NYSE: VLD) plan to address the NYSE non-compliance notice?

Velo3D plans to submit a compliance plan to the NYSE within 45 days to regain compliance with listing standards.

What was Velo3D's (NYSE: VLD) 30-day average market capitalization as of July 5, 2024?

Velo3D's 30-day average market capitalization was approximately $36.6 million.

What was Velo3D's (NYSE: VLD) stockholders' deficit as of March 31, 2024?

Velo3D's stockholders' deficit was approximately ($45.5) million.

Does the NYSE non-compliance notice affect Velo3D's (NYSE: VLD) current stock listing?

No, the notice does not impact the current listing of Velo3D's common stock on the NYSE.

Did Velo3D (NYSE: VLD) meet the NYSE's minimum stock price requirement?

Yes, as of June 28, 2024, Velo3D's average stock price was above the NYSE's minimum requirement of $1.