Velo3D receives another noncompliance notice from NYSE
Despite the recent reverse stock split, Velo3D is still struggling on the stock exchange
Velo3D - American manufacturer of 3D metal printers, has received a noncompliance notice from the New York Stock Exchange because its average total market capitalisation and stockholders equity over a consecutive 30-day period were both less than 50 million USD.
As of July 5, 2024, the company's 30 trading-day average market capitalisation was approximately 36.6 million USD and its last reported stockholders deficit, as of March 31, 2024, was approximately 45.4 million USD. The notice has no immediate impact on the listing of the company’s common stock and does not affect the company’s reporting obligations with the U.S. Securities and Exchange Commission.
Per Section 802.01B of the NYSE Listed Company Manual, public companies must ensure their total market capitalisation - measured by the current market price of their shares and the total number of outstanding shares - are above 50 million USD. In accordance with NYSE procedures, within 45 days from receipt of the notice, Velo3D will submit a plan advising the NYSE of the definitive action(s) the company has taken, is taking, or plans to take to regain compliance.
Should the NYSE accept that plan, Velo3D's common stock will continue to be listed and traded on the NYSE during an 18-month cure period, subject to the company's compliance with other NYSE continued listing standards and continued periodic review by the NYSE of the company's progress against its plan.
Velo3D's problems on the NYSE have been ongoing since the beginning of this year.
In January 2024, Velo3D received notice from the NYSE for failing to meet minimum average closing share price requirements for a period of 30 consecutive trading days. The company said it intends to take steps to regain compliance with this requirement within a six-month recovery period.
In June Velo3D announced that the management board has approved a 1-to-35 reverse stock split, which entered into force on June 13, 2024. The company's shares were listed on the NYSE under the symbol "VLD" at the new par value, and the CUSIP number changed to 92259N 203. The reverse split was intended to restore compliance with the minimum share price required to continue trading on the NYSE.
The company submited an appropriate amendment on June 12, 2024. The reverse split didn’t change the number of authorized shares of the company, which remained at 500 million, or the par value, which was $0.00001 per share.
As a result of the reverse split, each group of 35 current Velo3D shares was automatically converted into one new share. Fractional shares weren’t issued and shareholders holding fractional shares received a full share for them. The reverse split reduced the number of shares outstanding from approximately 297 million to approximately 8.5 million.
Source: www.velo3d.com