Velo3D, announced that it has received a continued listing standards notice from the New York Stock Exchange (NYSE). The NYSE notified the company on December 28, 2023 that it is not in compliance with Rule 802.01C of the NYSE's Listed Company Manual ("Rule 802.01C") relating to the minimum average closing price of the Company's common stock required over a consecutive 30 trading-day period.
This does not not result in the Company's common stock being delisted from the NYSE immediately. The Company intends to notify the NYSE of its intention to regain compliance with Rule 802.01C within 10 business days. We will have to wait and watch closely over the next week if Velo3D manages to abide by the stated rule.
Continued Listing Standards Notice
To remain listed on the NYSE, companies must meet certain criteria. These standards apply to companies' minimum share price, market capitalization, and financial reporting requirements. Markforged failed to meet one or more of these criteria, according to a continued listing standards notice. It can be caused by falling stock prices, financial losses, or late filing of financial reports.
Markforged made headlines recently in November after receiving a continued listing standards notice from the NYSE, implying financial difficulties and fueling speculation about the company's future.
Desktop Metal had previously received a similar notice in November 2023.
This time, the notifications are going to Velo3D. The Company can regain compliance at any time during the six-month cure period if the common stock has a closing share price of at least $1.00 on the last trading day of any calendar month during the cure period and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. If necessary to regain compliance, the Company intends to remain listed on the NYSE and will consider the best available alternatives, including, but not limited to, a reverse stock split, subject to stockholder approval.
During the six-month cure period, the Company's common stock will remain listed on the NYSE, subject to compliance with other NYSE continued listing requirements.
Velo3D Leadership Woes
Velo3D is going through an internal turmoil. The board has asked Benny Buller to step down as CEO, and Brad Kreger has been appointed Interim CEO, effective December 18, 2023, while the search for a permanent CEO has begun. Since December 2022, Mr. Kreger has served as the Company's Executive Vice President of Operations. William McCombe resigned as the company's Chief Financial Officer earlier in September 2023, effective September 29, 2023, to pursue other career opportunities.
