Velo3D Plummets on Going Concern Warning, Expects Debt Default

Velo3D shares shed a quarter of their value in postmarket trading after the company said it plans to issue a going concern warning following an expected default on its debt.

• Expects to default on senior secured convertible notes due 2026 due to failure to meet minimum revenue covenant
• About $200,000 of revenues previously reported in earnings should have been deferred
• Has been negotiating with debt holders but doesn’t expect a waiver or amendment will be obtained
• “If a waiver or amendment is not agreed to by the holders of the Notes, the Company does not have sufficient capital to satisfy ...