Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 68

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 68
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. However, many of our customers have found that other legacy AM technologies failed to produce
the required designs for the high-value metal parts and assemblies that our customers wanted to produce with AM. As a result, other AM
solutions often require that parts be redesigned so that they can be produced and frequently incur performance losses for high-value
applications.

In contrast, our technology can deliver complex
high value metal parts with the design advantages, lower costs and faster lead times associated with AM, and generally avoids the need
to redesign the parts. As a result, our customers have increasingly adopted our technology into their design and production processes.
We believe our value is reflected in our sales patterns, as most of our customers initially purchased a single machine to validate our
technology and have purchased additional systems over time as they have embedded our technology in their product roadmap and manufacturing
infrastructure. We consider this approach a “land and expand” strategy, oriented around a demonstration of our value proposition
followed by increasing penetration with key customers.

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Recent Developments

Recent Debt and Equity Transactions and Change in Majority Ownership

On December 24, 2024, the Company and Arrayed
Note Acquisition Corp., a subsidiary of Arrayed Additive, Inc. (“Arrayed”), entered into a debt for equity exchange transaction
where the Company issued 12,343,423 shares of the Company’s common stock, in exchange for the cancellation of $22.4 million in
principal amount of the Company’s Secured Notes (the “Notes”) plus $0.4 million of accrued interest on the Notes. Arrayed
continues to hold $5.0 million in principal amount of the Secured Notes, and as a result of the December 2024 Exchange, became, at the
time of the transaction, the owner of approximately 95% of our issued and outstanding common stock.

On February 24, 2025, the Company entered
into February Warrant Exchange Agreements with each of: (i) Highbridge Tactical Credit Master Fund, L.P. (“HM”); (ii) Highbridge
Tactical Credit Institutional Fund, Ltd. (collectively with HM, the “Highbridge Holders”); (iii) Anson Investments Master
Fund LP (“AMF”); (iv) Anson East Master Fund LP (collectively with AMF, the “Anson Holders”); (v) High Trail
Investments ON LLC (“HTI”), and (vi) HB SPV