Velo3D Inc. (NASDAQ:VELO) rose about 9% on Wednesday after the company announced a substantial reduction in debt following equity conversions by its CEO and a board member.
Chief Executive Officer Arun Jeldi purchased a $5 million promissory note from an existing creditor and converted it into common shares priced at $16.38 each, a level above the company’s current market price. Separately, board director Ken Thieneman and an existing noteholder converted a $10 million promissory note into shares at $10.50 per share under the terms of the convertible note agreement.
Following the transactions, Velo3D’s outstanding debt was reduced by roughly 60%, leaving the company with about $10 million in remaining debt.
“My decision to acquire and convert this debt at a significant premium to market reflects my belief in the long-term value of Velo3D,” Dr. Jeldi commented. “We have substantially deleveraged our balance sheet and are entering fiscal 2026 focused on scaling our platform and delivering results for shareholders.”
Velo3D develops advanced additive manufacturing systems and specializes in metal 3D-printing technologies used in aerospace and defense supply chains.