Velo3D Receives Notice of Non-Compliance from the New York Stock Exchange

Metal 3D Printer Manufacturer Bike3D received a notice of non-compliance from New York Stock Exchange (NYSE).

The company failed to comply with Section 802.01B of the NYSE Listed Company Manual because its average total market capitalization and shareholders' equity fell below $50 million for a consecutive 30-day period.

As of July 5, 2024, Velo3D's 30-trading-day average market capitalization was approximately $36.6 million. Its most recently reported shareholder deficit, as of March 31, 2024, was approximately $45.5 million.

The company said the continued listing standards notice would not have an immediate impact on its common stock listing and reporting obligations with the U.S. Securities and Exchange Commission (SEC).

Within 45 days of receiving the July 8 notice, Velo3D will submit a plan to the NYSE describing the definitive steps the company is taking, has taken or will take to regain compliance.

If the application is successful, the Company's shares will be listed and traded on the New York Stock Exchange for a period of 18 months. This period will be subject to compliance with the New York Stock Exchange's other continued listing standards and a periodic review of progress. If the Company is unable to return to compliance, it could be delisted.

Velo3D: current financial challenges

This is not the first time Velo3D has received a notice of non-compliance from the NYSE. In December 2023, the company announced that the NYSE had notified it of non-compliance with Rule 802.01C of the NYSE Listed Company Manual. This concerns the minimum average closing price of the stock over 30 consecutive trading days.

To address this situation, the Company approved a 1-for-35 reverse split of its common stock. Announced last month, the common stock began trading on the New York Stock Exchange on June 13 on a split-adjusted basis under the ticker symbol VLD. The reverse split reduced the number of shares of common stock outstanding from approximately 297,064,857 shares to approximately 8,487,567 shares.

Ultimately, this decision proved effective in restoring compliance. On June 28, 2024, the NYSE confirmed that Velo3Ds' stock price had now exceeded the required minimum of $1 based on a 30-day trading average.

Aside from the NYSE compliance, 2024 saw Velo3D undergo a notable restructuring and leadership changes to improve its financial position. Late last year, the company announced that founder Benny Buller had stepped down as CEO at the request of the board. He was replaced by Brad Kreger, who has undertaken significant operational reforms to strengthen Velo3D’s product quality and sharpen its business execution.

Following the management change, the company announced plans to raise $18 million through a registered direct offering, selling 36 million shares and warrants at $0.50 each, exercisable at $0.565. It also entered into stock purchase agreements with an existing lender and new investors. This move was taken to improve working capital, capital expenditures and general corporate objectives.

Velo3D announced a cash payment of $25 million to bondholders, repaying approximately $20.8 million in principal and accrued interest on its secured bonds. In addition, its secured bonds have been amended to remove certain repayment requirements and cash maintenance obligations.

Despite these measures, Velo3D continues to face unstable P&L performance. In its latest financial results for Q1 2024, the company reported revenue of $9.8 million, down 63.3% year-over-year from $26.8 million in Q1 2023. However, this represents a significant increase of 441.9% from the $1.8 million reported in Q4 2023. Furthermore, the company’s latest operating loss figure of -$21.4 million is an improvement from the -$24.3 million and -$58.1 million reported in Q1 2023 and Q4 2023, respectively.

3D Printing Companies Face Stock Market Challenges

Aside from Velo3D, 3D printing service provider Shapeways (SHPW) has already received a notice of non-compliance with continued listing from the NYSE. In 2022, it was announced that the company had failed to exceed $1.00 for a consecutive 30-day period, thereby violating NYSE requirements.

The company's financial difficulties continued to deteriorate after its notice of noncompliance. In February 2024, Shapeways auctioned off $5 million worth of Desktop Metal 3D printers. This included its P1 production system 3D printers, Shop system binder jet 3D printers, BMD 3D Printerspowder stations, powder mixers, sintering ovens and drying ovens.

Hosted by Global Heritage Partners (HGP), Shapeways had previously listed $4 million in Metal Desktop 3D Printing Technology in October 2023. These efforts have failed to address the company's financial problems. Earlier this month, Shapeways' bankruptcy was announced, along with the resignation of its management team.

Somewhere else, voxel jet recently retired from the NASDAQ Stock Exchange and terminated its registration with the SEC. By taking these decisive actions, the binder jet 3D printer maker hopes to reduce its expenses and strengthen its financial position.

After experiencing financial difficulties earlier this year, the company undertook a formal evaluation of strategic alternatives and ultimately concluded that the benefits of a NASDAQ listing did not justify the costs and time required to comply with SEC requirements.

You want to help select the winners of the 2024 competition 3D Printing Industry Awards? Join the expert committee today.

What does the The Future of 3D Printing socket?

Short term 3D Printing Trends have been highlighted by industry experts?

Subscribe to the 3D Printing Industry Newsletter to stay up to date with the latest developments in 3D printing.

You can also follow us on Twitterlike our Facebook page and subscribe to the The 3D Printing Industry on Youtube channel to access more exclusive content.