Velo3D
Velo3D
Metal additive manufacturing company VELO3D has announced it is to go public on the New York Stock Exchange (NYSE) in an agreement with special purpose acquisition company (SPAC) JAWS Spitfire Acquisition Corporation (JAWS Spitfire).
The definitive business combination agreement will see the combined company operate under VELO3D with current CEO Benny Buller and CFO Bill McCombe at the helm, and listed on the NYSE under the new ticker symbol “VLD” in the second half 2021. The transaction values the combined company at an enterprise value of approximately 1.6 billion USD.
“VELO3D partners with the world’s most innovative companies leading the future of space travel, transportation and energy,” said Buller. “I am proud that such visionary partners continue to trust VELO3D to build products through methods that were previously impossible. With JAWS Spitfire’s long-term partnership, we expect to extend the reach of VELO3D technology and bring its solutions to even more customers globally. As we scale our business and advance our growth strategy, we expect to expand the high value metal additive manufacturing market and strengthen our competitive position.”
“Benny and the VELO3D team have placed technical innovation at the core of their business model, and we are excited to partner as they bring their technology to a broader set of similarly innovative customers across the world,” said Barry Sternlicht, Co-Founder and Chairman of JAWS Spitfire. “Since commercialisation, VELO3D has attracted an impressive customer base, showcasing the seamless, cost-competitive production of previously unattainable designs. VELO3D is well-positioned for robust growth in an established and expanding market.”
With companies like SpaceX, Honeywell, Boom Supersonic, Chromalloy and Lam Research already deploying its Sapphire 3D printing platform, VELO3D says its growth strategy is “to focus on the specific products that only it can produce within the $100+ billion total addressable market for high value metal parts.” The company is also set to ship a new larger Sapphire XC system, which supports the production of parts that are up to five times higher volume and up to three times lower cost than existing Sapphire technology, in the fourth quarter of 2021.
VELO3D disclose details of the transaction: "The transaction values the combined company at an enterprise value of approximately 1.6 billion USD, at the 10.00 USD per share PIPE subscription price and assuming no public shareholders of JAWS Spitfire exercise their redemption rights. VELO3D will receive up to 345 million USD in proceeds from JAWS Spitfire’s cash in trust and a 155 million USD private placement of common stock at a 10.00 USD per share value. The private placement is led by strategic and institutional investors, including Baron Capital Group and Hedosophia. Upon completion of the transaction, VELO3D is set to benefit from a flexible capital structure with approximately 470 million USD of cash on the Company’s balance sheet, net of debt and assuming no redemptions are effected.
"Assuming no public shareholders of JAWS Spitfire exercise their redemption rights, VELO3D’s existing shareholders will own approximately 72%, JAWS Spitfire’s existing shareholders and sponsor will own approximately 21% and PIPE investors will own approximately 7% of the issued and outstanding shares of common stock, respectively, of the combined company at closing."
VELO3D is the latest 3D printing to go public following recent listings by Markforged which announced a definitive agreement to merge with SPAC ‘one’ last month, and Desktop Metal which became publicly listed on the NYSE in December in a deal with Trine Acquisition Corp.
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