The metal 3D printing specialist Velo3D has completed a public capital increase of 12 million US dollars. The company announced the placement of 34.3 million new shares and accompanying warrants at a price of USD 0.35 each.
The offering was made on a “reasonable best efforts” basis to new and existing institutional investors. The warrants are exercisable immediately and have a term of five years. Velo3D plans to use the net proceeds primarily to fund working capital, capital expenditures and general corporate purposes, including the repayment of outstanding indebtedness.
The proceeds will strengthen the capital base for the company’s planned growth with its additive manufacturing technology for critical metal components. “Our solution opens up a broad spectrum of design freedom and enables customers in the aerospace, energy and semiconductor industries to realize breakthrough innovations in their industries,” explained Velo3D.
At the heart of the technology is an integrated system consisting of Flow design software, Sapphire 3D printers and the Assure quality control system. All components are based on Velo3D’s patented “Intelligent Fusion” manufacturing process. A first generation of Sapphire systems has been in use at customers such as SpaceX, Honeywell and Lam Research since 2018.
The issue was accompanied by the investment bank A.G.P./Alliance Global Partners as sole placement agent. The offering was made on the basis of a securities offering memorandum registered with the US Securities and Exchange Commission (SEC). The public documents can be viewed on the SEC website.
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