- This represents a significant premium to its current share price — VELO shares were trading around $14.50 at the time of writing.
- Ken Thieneman, a director of the company, also converted a $10 million promissory note at $10.50 per share.
- Both transactions combined effectively reduced the company’s outstanding debt by 60% to approximately $10 million.
Shares of Velo3D Inc. (VELO) gained the most in over a month as it rallied more than 20% on Wednesday after the company’s CEO and a director converted debt into equity, effectively slashing the company’s outstanding debt by 60% to approximately $10 million.
Meanwhile, retail investors on Stocktwits cheered the confidence from company insiders.
Retail sentiment on VELO stock jumped from ‘neutral’ to ‘bullish’ territory over 24 hours, while message volumes remained at ‘high’ levels.
Equity Conversion Details
The metal 3D printing company said that its CEO Dr. Arun Jeldi purchased a $5 million promissory note from an existing debt holder and converted the same into common stock at $16.38 per share. This represents a significant premium to its current share price — VELO shares were trading around $14.50 at the time of writing.
Additionally, Ken Thieneman, a director of the company, also converted a $10 million promissory note at $10.50 per share.
"My decision to acquire and convert this debt at a significant premium to market reflects my belief in the long-term value of Velo3D," said Dr. Jeldi.
"We have substantially deleveraged our balance sheet and are entering fiscal 2026 focused on scaling our platform and delivering results for shareholders," he added.
Retail Reaction
One bullish user highlighted that the management’s move to buy up debt and convert it to equity at a premium was a “great show of confidence.”
Another bullish user applauded the CEO’s bet on the company by acquiring equity at a price higher than the market price, calling it a bullish signal. The user also noted that the cleaner balance sheet eliminated risk.
VELO stock has gained more than 408% in the past year.
Meanwhile, the 3D Printing ETF (PRNT), which tracks stocks of 3D printing companies, has gained about 7.5% in the past year. The Vanguard Extended Market Index Fund ETF (VXF) has risen 21% in the same time.
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