Summary by Moomoo AI
On August 12, 2024, Velo3D entered into a warrant inducement agreement to modify existing warrants and issue new ones. The company agreed to reduce the exercise price of 742,857 existing warrants from $19.78 to $2.28 per share, while simultaneously issuing new registered warrants to purchase 1,485,714 shares at the same $2.28 exercise price.The new warrants will be exercisable immediately upon issuance and will expire after five years. If exercised in full, the company expects to receive gross proceeds of approximately $1.62 million, which will be used for working capital and general corporate purposes. The warrants include provisions for cashless exercise and adjustments for certain corporate events.The new warrants contain a Beneficial Ownership Limitation of 4.99% (or optionally 9.99%) and include protective provisions for fundamental transactions. Both the modified existing warrants and new warrants were offered under the company's effective Registration Statement on Form S-3, with the transaction expected to close around August 13, 2024.
