Metal AM leader Velo3D restructures with new CEO and massive debt-equity swap, targeting renewed growth in aerospace and defense.
If you’re keeping tabs on the metal additive manufacturing scene, you’ll want to know about the snazzy transformation happening at Velo3D. The California-based metal 3D printer powerhouse isn’t just changing faces at the top – they’re orchestrating a complete corporate remix that’s turning heads across the industry.
The biggest headline? Velo3D’s welcoming Arun Jeldi, the CEO of Arrayed Additive, as their new chief executive, stepping in for Brad Kreger. But here’s where it gets really interesting: this executive shuffle is part of a massive financial makeover that saw Arrayed Notes Acquisition Corp. scoop up a whopping 95% of Velo3D’s common shares.
Let’s talk numbers, because they’re pretty eye-popping. Through this deal, Velo3D managed to wave goodbye to approximately $22.4 million (that’s 81.7% in principal amount) of its outstanding senior secured notes. Throw in another $369,000 of accrued interest, and you’ve got yourself a serious debt-for-equity swap that netted 185,151,333 newly minted shares of Velo3D’s common stock.
The company’s not just reshuffling papers, though. Part of that low weight – er, we mean debt – comes from a strategic focus on high-value markets. We’re talking defense, aerospace, and space applications, where precision metal printing isn’t just a nice-to-have, it’s mission-critical. They’re also rolling out a fresh go-to-market strategy that’s all about maximizing multiple revenue streams and delivering complete solutions, from systems to parts.
Speaking of performance, let’s peek under the hood at some recent numbers. Q3 2024 saw revenue hit $8.2 million – a 65.7% dip from the $24.1M in Q3’23. Not the prettiest picture, but here’s where it gets interesting: the company’s new strategy includes some serious cost-cutting moves, including a 30% reduction in headcount that helped slash quarterly expenses by 37% year-over-year.
“Completing the strategic review is a significant milestone for Velo3D,” commented Jeldi, clearly pumped about the company’s new direction. “Our focus remains on providing customers with our industry-leading, large-format metal 3D printing solutions.” And with their Sapphire XC printer already making waves, they might just have the hardware to back up that confidence.
This overhaul didn’t happen in isolation. The metal AM market’s been seeing some serious shuffling lately, with Forward AM partnering up with RP America for North American distribution, and Nano Dimension going through its own boardroom makeover. But Velo3D’s moves might just be the most dramatic yet – and with their sights set on sustainable growth starting in 2025, they’re certainly ones to watch.
Source: velo3d
