Why Metal 3D Printing Technology Company Velo3D Shares Are Tumbling Today
Portfolio Pulse from Lekha Gupta
Velo3D, Inc. (NYSE:VLD) shares plummeted after announcing a $12 million public offering of 34.28 million shares and warrants at $0.35 each. The offering aims to fund working capital, capital expenditures, and repay senior secured notes due 2026. VLD's stock dropped 40.14% to $0.2781. Investors can also access VLD through 3D Printing ETF (BATS:PRNT) and ARK Space Exploration & Innovation ETF (BATS:ARKX).
April 10, 2024 | 2:29 pm
News sentiment analysis
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NEUTRAL IMPACT
ARK Space Exploration & Innovation ETF (ARKX) includes Velo3D, potentially facing indirect effects from VLD's stock performance.
Given ARKX's exposure to Velo3D, the ETF could see indirect effects from VLD's stock performance. However, the diversified nature of ARKX likely mitigates any significant direct impact.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Velo3D through the 3D Printing ETF (PRNT), which may be indirectly impacted by VLD's stock movement.
While PRNT provides exposure to Velo3D, the ETF's diversified nature means VLD's stock movement may have a limited direct impact on PRNT's overall performance.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Velo3D's stock plummeted 40.14% after announcing a $12 million public offering at $0.35/share to fund capital needs and repay debt.
The significant drop in VLD's stock price is directly attributed to the announcement of a public offering at a price perceived as dilutive by the market. This dilution concern, coupled with the immediate exercisability of the warrants, likely contributed to the negative investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100