8-K: Velo3D to Commence Trading on OTCQX After NYSE Delisting

Velo3D's common stock and warrants will begin trading on the OTCQX Best Market after being delisted from the New York Stock Exchange due to failing to meet minimum market capitalization requirements.

Summary

• Velo3D received notice from the New York Stock Exchange (NYSE) on September 10, 2024, that it would be delisted due to not meeting continued listing standards.
• The company's average market capitalization fell below $15 million over a 30-trading day period, triggering the delisting.
• Velo3D had previously received a notice on July 8, 2024, for not meeting the requirement of a $50 million market cap and stockholder equity.
• The company submitted a plan to regain compliance on August 22, 2024, but did not receive a determination from the NYSE.
• Velo3D has decided not to take further steps to maintain its NYSE listing.
• Trading of Velo3D's common stock and warrants will commence on the OTCQX Best Market under the symbol VLDX on September 11, 2024.
• The OTCQX market offers companies access to U.S. capital markets with streamlined requirements.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the delisting from the NYSE, which is a significant setback. While the company has found a new trading venue, the overall situation indicates financial distress and a loss of investor confidence.

Positives

• The company has secured a new trading venue on the OTCQX Best Market, ensuring continued access to capital markets.
• The OTCQX market offers streamlined requirements, potentially reducing the cost and complexity of being publicly traded.
• The company highlights its innovative metal 3D printing technology and its partnerships with major companies in various industries.

Negatives

• The delisting from the NYSE is a significant negative event, indicating a failure to meet minimum financial standards.
• The company's market capitalization fell below $15 million, a substantial drop from the previous $50 million threshold.
• The company's plan to regain compliance with NYSE listing requirements was not successful.

Risks

• The delisting from the NYSE could negatively impact investor confidence and the company's ability to raise capital.
• Trading on the OTCQX market may result in lower trading volumes and liquidity compared to the NYSE.
• The company's financial performance needs to improve to regain investor confidence and potentially relist on a major exchange in the future.

Future Outlook

The company will now trade on the OTCQX Best Market, which is expected to provide a more cost-effective and streamlined trading environment. The company will need to focus on improving its financial performance to regain investor confidence.

Management Comments

• The company has decided not to take further steps to maintain its NYSE listing.
• Velo3D anticipates the commencement of trading on the OTCQX Best Market.

Industry Context

The move to the OTCQX market reflects the challenges faced by some technology companies in maintaining compliance with major exchange listing requirements. It highlights the importance of financial stability and market capitalization for publicly traded companies.

Comparison to Industry Standards

• The delisting from the NYSE is a significant setback compared to peers that maintain their listings on major exchanges.
• Companies like Desktop Metal and Markforged, while also facing challenges, have managed to remain listed on major exchanges, indicating Velo3D's financial struggles are more pronounced.
• The move to OTCQX is similar to other companies that have faced delisting, such as those in the biotech and resource sectors, which often use the OTC markets as a temporary measure.

Stakeholder Impact

• Shareholders will likely experience a decrease in the value of their holdings due to the delisting.
• Employees may be concerned about the company's financial stability and future prospects.
• Customers and suppliers may also be concerned about the company's long-term viability.

Next Steps

• Velo3D will focus on trading on the OTCQX Best Market.
• The company will need to work on improving its financial performance to regain investor confidence.

Key Dates

Keywords

delisting, OTCQX, NYSE, market capitalization, 3D printing, metal additive manufacturing, VLDX, stock, warrants