Velo3D, a leading provider of metal 3D printing technology for manufacturing, announced a significant financial restructuring through a debt-to-equity exchange agreement with Arrayed Notes Acquisition Corp. The transaction will convert approximately $22.4 million of debt into company equity, positioning Arrayed Notes to become the majority shareholder with 95% ownership of Velo3D.
Under the terms of the agreement, Arrayed Notes will exchange 81.7% of Velo3D's outstanding senior secured notes, along with roughly $369,000 in accrued interest, for 185,151,333 newly issued shares of company common stock. The holder will retain approximately $5 million in senior secured notes following the completion of the transaction.
Financial Restructuring & Leadership Transition
As part of this strategic transformation, Arun Jeldi, CEO of Arrayed Additive, Inc. (parent company of Arrayed Notes Acquisition Corp), will assume the role of CEO at Velo3D and join its Board of Directors. The company's Board will be streamlined from 10 to 5 members, with six current directors stepping down. Brad Kreger will continue serving as Chief Operating Officer.
"With the majority of our senior secured notes cancelled, we are now in a stronger financial position, enabling us to focus our efforts on the future of Velo3D and delivering unparalleled large-format metal 3D printing capabilities to our global customer base," said Brad Kreger, Chief Operating Officer of Velo3D.
The transaction aims to combine Velo3D's expertise in defense, space/aerospace, and technology markets with Arrayed Additive's capabilities in lightweight precision manufacturing using magnesium and aluminum alloys.
"Velo3D's industry leading technology and capabilities allow Arrayed Additive to greatly expand our services and product offering to our customers. I am thrilled to lead Velo3D into a new chapter of growth."
- Arun Jeldi, incoming CEO of Velo3D
Transaction Details
- Velo3D's common stock will continue to trade publicly on OTCQX
- Sidley Austin LLP and Berkeley Research Group, LLC are serving as legal and financial advisors to Velo3D
- Arnold & Porter Kaye Scholer LLP is acting as legal advisor to Arrayed Additive
