Velo3D to Secure $18M in Capital Through Registered Direct Offering of Shares and Warrants
December 29, 2023
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VELO3D ($NYSE:VLD): Velo3D is an innovative 3D printing company that has become a leader in metal additive manufacturing technology. Recently, Velo3D has announced an intention to bring in approximately $18 million through an offering of shares and warrants which will be registered directly. This move is expected to provide the company with a much needed injection of capital that will help them continue to create new products and services and expand into new markets.
This news is sure to be welcomed by investors and the industry at large, as Velo3D continues to make waves in the 3D printing industry. With the new capital, the company is poised to continue its meteoric rise in the industry and push the boundaries of what is possible with 3D printing technology.
Stock Price
At the time of the announcement, the VELO3D stock opened at $0.5 and closed at $0.4, registering a 33.7% plunge from its prior closing price of 0.6. The proceeds from the offering will be used to fund research and development, marketing, working capital, and general corporate purposes. The warrants have an exercise price of $0.5 per share and expire within five years from the date of issuance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Velo3d. More…
| Total Revenues | Net Income | Net Margin |
| 105.79 | -53.94 | -91.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Velo3d. More…
| Operations | Investing | Financing |
| -112.92 | 52.54 | 78.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Velo3d. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 230 | 126.8 | 0.52 |
Key Ratios Snapshot
Some of the financial key ratios for Velo3d are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -49.4% |
| FCF Margin | ROE | ROA |
| -113.4% | -30.6% | -14.2% |
Analysis
GoodWhale performed an analysis of VELO3D‘s fundamentals and found that according to Star Chart, VELO3D is strong in asset and growth, but weak in dividend and profitability. In terms of health, VELO3D has an intermediate score of 6/10 considering its cashflows and debt, and is likely to safely ride out any crisis without the risk of bankruptcy. We classified VELO3D as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. For these reasons, VELO3D may be an attractive investment for investors seeking high growth but must also be willing to take on more risk. Investors with a higher risk tolerance may be more interested in VELO3D, as well those looking for short-term returns. Investors should be aware that VELO3D may lack some stability, and should take into account their financial goals and risk tolerance when considering investing in VELO3D. More…
Peers
The company competes with 3DX Industries Inc, Markforged Holding Corp, and Cognex Corp.
– 3DX Industries Inc ($OTCPK:DDDX)
3DX Industries Inc is a publicly traded company with a market capitalization of $631,910 as of March 2021. The company has a return on equity of 16.98% as of the same date. 3DX Industries Inc is engaged in the business of providing 3D printing and related services to the aerospace, defense, and other industries.
– Markforged Holding Corp ($NYSE:MKFG)
Markforged Holding Corp is a 3D printing company that produces machines that print metal and carbon fiber. The company has a market cap of 425.61M as of 2022 and a Return on Equity of 8.01%. Markforged was founded in 2013 by Greg Mark and is headquartered in Watertown, Massachusetts.
– Cognex Corp ($NASDAQ:CGNX)
Cognex Corp is a leading provider of industrial machine vision systems. Their products are used in a variety of industries, including automotive, electronics, food and beverage, and pharmaceuticals. Cognex’s market cap is 8.17B as of 2022, and their ROE is 14.01%. The company’s products are used to automate tasks and improve productivity.
Summary
Velo3D is a 3D printing company that designs and manufactures metal printing systems for a wide range of industries. The company recently announced a registered direct offering of $18 million in shares and warrants. This announcement resulted in a decrease in the stock price. Investors should carefully consider the company’s financial position and prospects for the future before investing in Velo3D.
The company’s growth potential should be weighed against any risks associated with the offering of new securities. Analyzing the macro-environment, industry trends and the competitive landscape will also provide valuable insight for potential investors. Ultimately, a thorough understanding of the risks involved will help investors make informed decisions about investing in Velo3D.
