Velo3D's common stock is to be delisted from the New York Stock Exchange (NYSE), with the company commencing trading on the OTCQX Best Market.
The NYSE announced that the staff of NYSE Regulation has determined to commence proceedings to delist Velo3D's common stock (VLD) and warrants to purchase one share of common stock (VLD WS), each at an exercise price of 402.50 USD per share, on Tuesday September 10. Trading in the company's securities was suspended immediately.
Velo3D's stock and securities have been delisted because the company had fallen below the NYSE's continued listing standard, which requires listed companies to maintain an average global market capitalisation over a consecutive 30 trading day period of at least 15,000,000 USD. NYSE issued Velo3D with a noncompliance notice earlier this year - the second the company had received after the value of its stock dipped below the 1.00 USD threshold for 30 consecutive trading days late last year. While Velo3D approved a 1-for-35 reverse stock split of the company's common stock to regain compliance for that rule of the NYSE's Listen Company Manual, the NYSE has now commenced proceedings to delist the company's stock.
The company has a right to a review of this determination by a Committee of the Board of Directors of the Exchange, with the NYSE applying to the Securities and Exchange Commission to delist the company's securities upon completion of all applicable procedures, including any appeal by the company of the NYSE's Regulation staff's decision. Velo3D has, however, already announced that its common stock anticipates the commencement of trading on the OTCQX Best Market under the VLDX ticker.
OTCQX Best Market is the top tier of three over the counter stock trading marketplaces, with less regulation and transparency than the NYSE market. The OTCQX is designed to help companies lower the cost and complexity of being publicly traded, with companies still having to meet high financial standards, follow best corporate governance practice, and demonstrate compliance with applicable securities laws. More than 12,000 companies have access to the OTCQX Best Market.
Last month, Velo3D announced it is to make 30% of its workforce redundant in an effort to reduce costs.
