Just a heads up to $VELO.
There was a $500M shelf for an ATM / Warrants dilution, which is structurally large relative to its $311m MC.
This was a popular retail X stock for speculated SpaceX, Andruil, and Defense supply chains:
With:
- $32.6M from Department of War
- $11.5M from Defense Primes
- $9.8M from DLA
Contracts all recently (largely positive for the company).
They announced the dilution was for "scaling 400 production systems over the next decade" as well as M&A.
However, I do think this amount relative to MC is pretty predatory, especially with ATMs.
I mentioned earlier companies like $VELO can be strategically sound, but financially, not as much so when I covered the stock earlier. And this is a material risk to always consider.
But, it's good to understand overhang risk if you're still long.
Just a standard heads up risk disclosure since this is a popular name.
