Velo3D Lands $32.6 Million DIU Deal for Project FORGE, Announces $30 Million PIPE

Overview

• The Defense Innovation Unit awarded Velo3D a $32.6 million Other Transaction Agreement to help clear a production bottleneck in a major U.S. weapons program under Project FORGE.
• Velo3D will work with DIU, the U.S. Navy and a prime contractor to prototype and qualify metal additive components using its Rapid Production Solution.
• The agreement includes an option to explore developing the largest U.S. laser powder bed fusion printing capability.
• Separately, Velo3D entered a $30 million private placement for approximately 3.6 million shares at $8.25 each, with closing expected on or about December 23 subject to customary conditions.
• The company says proceeds will support general purposes and capital expenditures for Rapid Production Services, and its shares rose about 11% in premarket trading, according to Benzinga.