2023-12-17 17:56:33
Velo3D CEO and founder Benny Buller has stepped down as chief executive. The pressure from shareholders, who have seen their investment almost completely evaporate, has apparently become too great.
Brad Kreger will start as interim CEO on Monday, December 18. He has been Executive Vice President of Operations at the American manufacturer of metal AM systems for a year. He previously worked at Thermo Fisher Scientific, among others. In addition, the Board of Directors has initiated a strategic business review process to explore alternatives to maximize shareholder value.
Trade fair promise not fulfilled
Velo3D was also unable to fulfill the promise of its IPO via a SPAC. Even the news at the beginning of December that the Sapphire 3D printers have been certified for the US Department of Defense and that they can be linked to the SIPPNet of the US Defense Department, could not bring the stock price in the right direction. This year, the price has collapsed from its February peak ($3.54) to less than $0.55 a few days ago. The all-time high was around $12. For the Board of Directors, this means that a different course is needed. At the presentation of the 3rd quarter results, the company announced another reorganization to ensure sufficient liquidity to become profitable in 2024. Direct expenditure would be reduced by 40%. At the end of the 3d quarter (net loss $17.1 million), Velo3D still had $72 million in cash and investments on its balance sheet.
All options open, including merger or sale
After the customary thank you to Benny Buller, who started Velo3D nine years ago, Carl Bass, Chairman of the Board of Directors, said it was believed a change in leadership would be best for the company’s future success. Bass, the former CEO of Autodesk, has led Velo3D’s Board of Directors for five years. The board also includes Adrian Keppler, the former CEO of EOS. In the near future, Velo3D will list strategic alternatives. All options are open, including a possible merger or sale. Benny Buller will remain a member of the Velo3D Board of Directors.
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