Velo3D, Inc. Receives Continued Listing Standards Notice from the NYSE
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Insights
The notification received by Velo3D, Inc. from the NYSE regarding non-compliance with the minimum average closing price requirement signals a critical juncture for the company's financial health and investor relations. A stock price consistently below $1 can often be perceived as a red flag by investors, indicating potential liquidity issues and a lack of confidence in the company's future prospects. The six-month cure period provides a window for Velo3D to implement strategic financial maneuvers, such as a reverse stock split, which could potentially increase the per-share price by decreasing the number of shares outstanding, thereby meeting the NYSE's requirements.
However, such measures are not without consequences. A reverse stock split, while possibly beneficial for maintaining the listing status, might be viewed unfavorably by the market as it could be interpreted as a cosmetic fix rather than a substantive improvement in the company's underlying fundamentals. Long-term implications for stakeholders include the possibility of dilution of ownership and a potential impact on the company's ability to raise capital. It is crucial to monitor the company's subsequent financial reports and strategic announcements as they will provide insights into its operational efficiency and future profitability.
From a market perspective, Velo3D's situation highlights the competitive and volatile nature of the metal additive manufacturing industry. The sector is characterized by rapid technological advancements and a high barrier to entry due to the significant capital and research investment required. The company's ability to maintain its listing on the NYSE is not only important for its current financial standing but also for its reputation and attractiveness to potential institutional investors who may have policies against investing in stocks priced under a certain threshold.
Furthermore, the company's strategic response to this challenge will be closely watched by competitors and customers alike, as it could signal Velo3D's operational resilience and management's capability to navigate financial distress. Any successful measures taken to regain compliance could also serve as a case study for other companies in similar situations, potentially influencing industry norms regarding stock price management and compliance strategies.
The Company intends to notify the NYSE within 10 business days of its intent to regain compliance with Rule 802.01C. The Company can regain compliance at any time within the six-month cure period if, on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least
The Company’s common stock will continue to be listed on the NYSE during the six-month cure period, subject to the Company’s compliance with other NYSE continued listing requirements.
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. For more information, please visit Velo3D.com, or follow the company on LinkedIn or Twitter.
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 compliance with Rule 802.01C within the applicable cure period, the Company’s ability to comply with applicable listing standards of the NYSE 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 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.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240103346147/en/
Media Contact:
Dan Sorensen, Senior Director of Public Relations
press@velo3d.com
Investor Relations:
Bob Okunski, VP Investor Relations
investors@velo3d.com
Source: Velo3D, Inc.
FAQ
What notice did Velo3D, Inc. receive from the New York Stock Exchange?
What is the minimum average closing price required for compliance with Rule 802.01C?
What options is Velo3D, Inc. considering to regain compliance with NYSE listing requirements?
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How long is the cure period for Velo3D, Inc. to regain compliance with NYSE listing requirements?
