Why Is Velo3D (VLD) Stock Down 23% Today?


  • Velo3D (VLD) stock is down on Wednesday after announcing a proposed public offering.
  • The company hasn’t revealed the price or number of shares in this offering.
  • Even so, shares of VLD stock are falling in anticipation of this news.
VLD Stock - Why Is Velo3D (VLD) Stock Down 23% Today?

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Velo3D (NYSE:VLD) stock is dropping on Wednesday after the metal 3D printing company announced plans for a proposed public offering of its shares.

Investors will note that Velo3D doesn’t have the fine details of the public offering ready just yet. Instead, they’ll have to wait to learn how many shares it will include and what they will be priced at.

What we do know is that A.G.P./Alliance Global Partners is serving as the sole placement agent for this offering. We also know that the company intends to use the funds raised from it for working capital, capital expenditures as well as other general corporate purposes. That includes repaying debts on secured notes due 2026.

What This Means for VLD Stock

A public offering will increase the total number of VLD shares available on the market. That also means it will dilute the stakes of current investors in the company. This is one reason why VLD stock is down today.

Investors are also likely worried about the price of VLD shares in the offering. Public offerings typically sell shares at a discounted price. This typically causes the price of shares already on the market to drop.

VLD stock is down 22.7% as of Wednesday morning but was up 35.6% year-to-date when markets closed yesterday.

There are more stock market stories worth reading about below!

We have all of the latest stock market news traders need to know about on Wednesday! That includes what has shares of Ascent Solar Technologies (NASDAQ:ASTI) stock, Wolfspeed (NYSE:WOLF) stock and iCoreConnect (NASDAQ:ICCT) stock in the news today. You can find out more on these matters at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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