Velo3D raises $30M to meet growing demand for its offerings
Velo3D, based in Fremont, California, USA, has announced that it has entered into a securities purchase agreement with two fundamental institutional investors to raise $30 million of gross proceeds via a private investment in public equity (PIPE) transaction. The offering is led by a $20 million investment from a new fundamental institutional investor, with additional participation from a large existing institutional shareholder.
The company intends to use the net proceeds for general corporate purposes and capital expenditures to meet growing demand for its offerings, such as Rapid Production Services (RPS), which supports the space and defence sectors.
Under the terms of the securities purchase agreement, the company will issue, for an aggregate purchase price of $30 million, a total of approximately 3.6 million shares of common stock, par value $0.00001 of the company, at a price of $8.25 per share.
“We believe securing this capital from a new fundamental institutional investor and a large existing institutional shareholder is a powerful endorsement of Velo’s trajectory and the critical role we play in the modern space and defence landscape,” said Arun Jeldi, CEO of Velo. “As the defence and space sectors demand faster, more resilient supply chains, this investment empowers us to execute our strategic vision. We are eager to collaborate with our new partners as we scale our capabilities and deliver on the promise of next-generation manufacturing for our nation’s most vital industries.”
Lake Street Capital Markets and Lucid Capital Markets are acting as Placement Agents for the PIPE.
The shares of common stock being sold have not been registered under the US Securities Act of 1933, as amended (the US Securities Act), and may not be offered or sold in the United States absent registration under the US Securities Act and all applicable US state securities laws or in compliance with applicable exemptions therefrom.
