Velo3D (VLDX) Announces Debt for Equity Exchange Transaction

Velo3D, Inc. (OTCQX: VLDX) ("Velo3D" or the "Company"), the leader in scalable metal 3D printing technology for production manufacturing, today announced a debt for equity exchange where approximately $22.4 million or 81.7% in principal amount of its outstanding senior secured notes, plus approximately $369 thousand of accrued interest on such notes, held by Arrayed Notes Acquisition Corp. (the "Holder") will be cancelled in exchange for an issuance of 185,151,333 newly issued shares of the Company's common stock to the Holder. The Holder will continue to hold approximately $5 million of the outstanding senior secured notes following the transaction. With the completion of this transaction, the Holder will hold 95% of Velo3D's issued and outstanding common stock. Shares of Velo3D's issued and outstanding common stock not held by the Holder will remain publicly traded on OTCQX.

Arun Jeldi, CEO of Arrayed Additive, Inc., parent company of the Holder, will be appointed as CEO of Velo3D and as a member of Velo3D's Board of Directors. In connection with the exchange transaction, Mr. Carl Bass, Ms. Ellen Smith, Ms. Gabrielle Toledano, Mr. Matthew Walters, Mr. Benyamin Buller and Mr. Darryl Porter have resigned from Velo3D's Board of Directors and, if applicable, all committees of the Board of Directors on which they serve. Velo3D's Board of Directors will be reduced from 10 to 5 members upon the closing of the exchange transaction. Brad Kreger will remain with the Company as its Chief Operating Officer.

The significant reduction in the outstanding senior secured notes greatly alleviates Velo3D's overall debt obligations and allows the Company to focus on its operations and continue to deliver its market leading solutions to its customers.

"I am excited to work with Arun and the Arrayed Additive team to reposition the Company for future success," said Brad Kreger, the newly appointed Chief Operating Officer of Velo3D. "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."

"Velo3D's industry leading technology and capabilities allow Arrayed Additive to greatly expand our services and product offering to our customers. Velo3D's focus on defense, space / aerospace and technology end-markets is complementary to Arrayed Additive's customer base and our leading technology in light weight precision manufacturing using magnesium and aluminum alloy further expands Velo3D's capabilities. I am thrilled to lead Velo3D into a new chapter of growth," said Arun Jeldi, Arrayed Additive CEO.

Advisors:

In connection with the exchange transaction, Sidley Austin LLP is serving as legal advisor and Berkeley Research Group, LLC is serving as financial advisor to the Company. Arnold & Porter Kaye Scholer LLP is serving as legal advisor to Arrayed Additive.

You May Also Be Interested In

• Waymo Explores Split With Uber - FT
• Replimune (REPL) files for 25.1M share offering by selling stockholders
• American Fusion receives Texas certification for its fusion engine models