What happened
Shares of Nano dimension (NASDAQ: NNDM) plunged today, down 26% at noon EST, after the company priced a direct offer. The price was well below yesterday’s closing price.
So what
3D printing technology company priced a direct offering of 25 million U.S. Depository Shares (ADS) at $4 per ADS, representing a discount of more than 30% from yesterday’s closing price of 5.86 $. The deal will bring in $100 million in gross proceeds for Nano Dimension before fees and other offering-related expenses are taken into account.
Nano Dimension’s DragonFly system. Image source: Nano Dimension.
Nano Dimension intends to use the net proceeds for working capital and general corporate purposes, which could eventually include acquisitions and other strategic opportunities.
The stock jumped earlier this week after Nano Dimension received notice of clearance for a US patent related to the manufacture of printed circuit boards (PCBs).
Now what
The news comes about a week after the company announced disappointing third quarter results results. The company has been under pressure — sales fell 80% in the last quarter — due to the COVID-19 pandemic, which has affected demand for the company’s DragonFly industrial 3D printer. Management remains convinced that demand will rebound after the end of the health crisis.
Nano Dimension ended the third quarter with $45.7 million, up from $3.9 million at the end of 2019. The company attributed the increased cash to other deals throughout the year. The latest offering will raise substantial capital but will also dilute existing shareholders.
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