Velo3D, a metal additive manufacturing technology company focused on aerospace and defense supply chains, announced that CEO Dr. Arun Jeldi acquired a $5 million promissory note from an existing debt holder and converted it into shares of common stock at $16.38 per share, a price significantly above the company’s current market value.
The transaction represents a vote of confidence in the company’s long-term prospects while materially improving its balance sheet. In a separate transaction, existing noteholder and company director Ken Thieneman converted a $10 million promissory note into equity at $10.50 per share under the original terms of the convertible note.
Following these conversions, Velo3D reduced its outstanding debt by approximately 60%, bringing total debt down to about $10 million.
The company said the recapitalization strengthens its financial position as it enters fiscal 2026 with a focus on scaling its additive manufacturing platform and delivering long-term value to shareholders.
Velo3D develops advanced metal 3D printing systems used to produce complex, high-value parts across industries including space exploration, aviation, energy, power generation, and semiconductors. Its integrated manufacturing platform includes Flow print preparation software, the Sapphire family of metal printers, and the Assure quality control system, all powered by the company’s Intelligent Fusion manufacturing process.
Since delivering its first Sapphire system in 2018, Velo3D has partnered with companies such as Honeywell, Honda, Chromalloy, and Lam Research. The company has also been recognized as one of Fast Company’s Most Innovative Companies for 2024.
KEY QUOTE:
“My decision to acquire and convert this debt at a significant premium to market reflects my belief in the long-term value of Velo3D. We have substantially deleveraged our balance sheet and are entering fiscal 2026 focused on scaling our platform and delivering results for shareholders.”
Dr. Arun Jeldi, Chief Executive Officer Of Velo3D
