Velo3D has received a noncompliance notice from the New York Stock Exchange because its average total market capitalisation and stockholders equity over a consecutive 30-day period were both less than 50 million USD.
As of July 5, 2024, the company's 30 trading-day average market capitalisation was approximately 36.6 million USD and its last reported stockholders deficit, as of March 31, 2024, was approximately 45.4 million USD. The notice has no immediate impact on the listing of the company’s common stock and does not affect the company’s reporting obligations with the U.S. Securities and Exchange Commission.
Per Section 802.01B of the NYSE Listed Company Manual, public companies must ensure their total market capitalisation - measured by the current market price of their shares and the total number of outstanding shares - are above 50 million USD. In accordance with NYSE procedures, within 45 days from receipt of the notice, Velo3D will submit a plan advising the NYSE of the definitive action(s) the company has taken, is taking, or plans to take to regain compliance. Should the NYSE accept that plan, Velo3D's common stock will continue to be listed and traded on the NYSE during an 18-month cure period, subject to the company's compliance with other NYSE continued listing standards and continued periodic review by the NYSE of the company's progress against its plan.
Velo3D has been hit with a noncompliance notice by the NYSE once before, with TCT reporting in January that the company's stock had fallen below the minimum requirements of 1.00 USD based on a 30-day trading average. After Velo3D announced a 1-for-35 reverse stock split, however, the NYSE confirmed that a calculation of Velo3D's average stock for the 30 trading days ending June 28, 2024 indicated the company's stock was above the 1.00 USD threshold.
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