Velo3D Leaves NYSE for Over-the-Counter Market: Here’s Why – 3DPrint.com | The voice of 3D printing / additive manufacturing

As financial challenges reshape the 3D printing landscape, Velo3D (OTCQX: VLDX ) has moved from the New York Stock Exchange (NYSE) to the OTCQX Best Market, a tier of the over-the-counter (OTC) markets with lower costs and less . regulatory requirements than the big exchanges. Along with this transition, the company also announced the return of Zach Murphree as vice president and general manager, an experienced leader who has been instrumental in Velo3D’s growth and innovation.

The Reaper turbo pump presented by Velo3D at RAPID + TCT 2023. Image courtesy of Velo3D via LinkedIn.

Trading on OTCQX under the symbol “VLDX” began on September 11, 2024. The transition was driven in large part by financial challenges. At the end of 2023, the company received a notice of default from the NYSE after failing to meet the minimum market capitalization of $50 million and having a book capital shortfall of $45.5 million. Despite efforts to address the issue, including consideration of a reverse stock split, the company ultimately decided to move to the OTCQX, where it joins more than 12,000 US and international securities traded on this regulated platform.

The OTCQX is the top tier of OTC markets and offers companies a more cost-effective way to access the US capital markets. This platform allows companies to maintain transparent trading for investors while avoiding the higher costs and complexities of listing on a larger exchange. To qualify for OTCQX, Velo3D had to meet high financial standards and adhere to best corporate governance practices, ensuring investors still have confidence in its regulatory compliance.

While the OTCQX allows companies to remain publicly traded with fewer reporting requirements, it often means less visibility and less trading activity. Unlike traditional exchanges like the NYSE or Nasdaq, OTCQX has a more flexible option. OTCQX differs from the lower tiers of OTC markets, such as the Pink Open Market or OTCQB, which are often associated with riskier and more volatile stocks. OTCQX companies must still meet certain financial and reporting requirements, making it a respected option for companies like Velo3D looking to cut costs but still maintain investor confidence..

Zach Murphree joins Velo3D. Image courtesy of Business Wire.

For Velo3D, this move shows its financial difficulties and the challenges 3D printing companies have faced to stay listed on major exchanges. In fact, this change is not exclusive to Velo3D. The 3D printing industry has seen several companies struggling to meet the listing requirements of the largest exchanges.

In parallel with this transition, Velo3D welcomed back Murphree. A familiar face, Murphree was instrumental in the development of Velo3D’s key technologies during his previous eight-year tenure at the company. Its return is seen as a significant move to drive product innovation and support strategic growth, particularly as Velo3D realigns its priorities and expands its influence in the defense and aerospace sectors.

Murphree’s role at Velo3D has always been instrumental, especially during the development of the company’s Sapphire 3D printers. His work has been crucial in overcoming many limitations of legacy additive manufacturing technology, helping Velo3D’s customers move beyond prototyping and into production manufacturing. The ability to achieve machine-to-machine repeatability, which Murphree helped lead, has been a key factor in the company’s success.

“There aren’t many people who have the additive manufacturing experience that Zach has, and I think I speak for everyone at Velo3D that we’re thrilled to welcome him back to the company,” said Brad Kreger, CEO of Velo3D. “Zach is not only a beloved leader, but also a highly respected figure in the industry and we are happy to see him continue to build on the legacy he has left at Velo3D. His return will be a significant boost to our business as we complete our realignment initiatives and we continue our adoption growth in the defense and aerospace industries.

Speaking about his return, Murphree said he was excited to join Velo3D at this stage of its growth, primarily as the company works to expand its customer base in the aerospace and defense sector. Murphree had left Velo3D in December 2023, at the same time that former CEO and founder Benny Buller departed. Since then, Murphree has served as VP of Business Development at Freeform, a company known for deploying autonomous software-defined metal 3D printing factories globally.

As Velo3D moves into its next phase, Murphree’s return and move to OTCQX signal a new focus. Especially with Murphree back at the helm of product management and go-to-market strategies, the company shows its intent to remain a key player in the industry despite the current market difficulties.