Velo3D signed a $32.6 million defense contract with a Department of War unit and announced a $30 million private investment via PIPE financing
- The $32.6 million contract backs DoW’s Project FORGE initiative, which aims to address manufacturing bottlenecks that limit production across the U.S. defense industrial base.
- The contract also includes an option to explore the development of the largest-format laser powder bed fusion printing capability in the U.S.
- The share purchase agreement is led by a $20 million investment from a new institutional investor with additional participation from a large existing institutional shareholder.
Shares of Velo3D, Inc. (VELO) jumped 23% on Monday after the additive manufacturing firm landed a $32.6 million defense contract with the Department of War’s Defense Innovation Unit (DIU) and announced a $30 million private investment in public equity (PIPE) financing.
Velo3D entered into an agreement with the DIU unit to support a major weapon system program. The $32.6 million contract backs DIU’s Project FORGE initiative, which aims to address manufacturing bottlenecks that limit production across the U.S. defense industrial base.
Velo3D’s Involvement
Velo3D will work with DIU, the U.S. Navy, and a ‘key industry prime’ to prototype and qualify additively manufactured components. The goal is to replace traditional manufacturing methods that have constrained output and enable scalable production using advanced additive manufacturing.
The contract also includes an option to explore the development of the largest-format laser powder bed fusion printing capability in the U.S.
Securities Purchase Agreement
Separately, the company entered into a PIPE transaction with two institutional investors and will issue about 3.6 million shares at $8.25 per share to raise $30 million in gross proceeds. This represents a 23.6% discount to the stock’s closing price of $10.8 on Friday.
The transaction is led by a $20 million investment from a new fundamental institutional investor with additional participation from a large existing institutional shareholder, the company added.
The funds will support general corporate needs and capital expenditures, including growing demand for Rapid Production Services (RPS) in the space and defense sectors.
Retail sentiment for VELO on Stocktwits remained in the ‘bullish’ territory over the past 24 hours, amid ‘high’ message volumes.
VELO was among the top trending tickers on Stocktwits.
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