Velo3D has come under new ownership after Arrayed Additive, Inc. exchanged approximately 22.4 million USD (81.7%) of its outstanding senior secured notes and 369,000 USD of accrued interest for 185,151,333 newly issued shares of the company's common stock.
This debt for equity exchange has been carried out via Arrayed Notes Acquisition Corp., a subsidiary of Arrayed Additive, and was confirmed on December 24, 2024.
Arrayed Notes Acquisition Corp. will continue to hold approximately 5 million USD of the outstanding senior secured notes following the transaction and will hold 95% of Velo3D's issued and outstanding common stock. The rest of the shares will remain publicly traded on OTCQX.
A debt for equity exchange allows a company to write off money owed to creditors, with a Velo3D press release stating that this reduction in outstanding senior secured notes 'greatly alleviates' the company's overall debt obligations. Velo3D says the exchange will allow it to 'focus on its operations and continue to deliver its market-leading solutions to its customers.'
Velo3D has been working through a period of financial struggles for over 12 months. At the end of 2023, the company was hit with a New York Stock Exchange noncompliance notice, with founder Benny Buller vacating his position as CEO. Throughout 2024, there were two significant waves of redundancies, and by December, Velo had entered a forbearance agreement with creditors to give it temporary relief until December 16, 2024 and allow time for the company to procure additional funding.
Arrayed Additive has now stepped in and will attempt to reposition the company. Arun Jeldi, CEO of Arrayed Additive, will be appointed as CEO of Velo3D and as a member of Velo3D's Board of Directors. Current Velo3D CEO Brad Kreger will transition to Chief Operation Officer, while the Velo board will be reduced from ten to five members. Carl Bass, Ellen Smith, Gabrielle Toledano, Matthew Walters, Benny Buller and Darryl Porter have all resigned from Velo3D's Board of Directors, with Jeldi joining to round out the five members.
"Velo3D's industry leading technology and capabilities allow Arrayed Additive to greatly expand our services and product offering to our customers," said Jeldi. "Velo3D's focus on defence, space / aerospace and technology end-markets is complementary to Arrayed Additive's customer base and our leading technology in light weight precision manufacturing using magnesium and aluminium alloy further expands Velo3D's capabilities. I am thrilled to lead Velo3D into a new chapter of growth."
"I am excited to work with Arun and the Arrayed Additive team to reposition the Company for future success," added Kreger. "With the majority of our senior secured notes cancelled, we are now in a stronger financial position, enabling us to focus our efforts on the future of Velo3D and delivering unparalleled large-format metal 3D printing capabilities to our global customer base."
Arrayed Additive is an Indianapolis-based company that specialises in magnesium and aluminium additive manufacturing. The company was set up in 2023 and focuses on the aerospace, automotive and engineering sectors.
