Desktop Metal explores strategic alternatives under new board member

WALTHAM, MA - Nano Dimension Ltd. (NASDAQ:NNDM), a provider of digital manufacturing solutions with a market capitalization of $331 million, today announced that its subsidiary, Desktop Metal, has initiated a strategic review process to address its financial challenges. Desktop Metal is exploring various strategic alternatives to manage its liabilities and liquidity requirements. According to InvestingPro data, while the company maintains a strong cash position relative to debt, it has been rapidly burning through its cash reserves.

In line with these efforts, the company has appointed Robert Warshauer to its Board of Directors. Additionally, Desktop Metal has engaged the services of Piper Sandler & Co. and FTI Consulting, Inc. as financial advisors to assist in the strategic review process. However, there is no certainty regarding the outcome or the timeline of this review.

Nano Dimension, which serves industries such as defense, aerospace, automotive, electronics, and medical devices with its digital manufacturing technologies, is expected to provide more details on this development during its financial results call for the year 2024 and outlook for 2025. The company maintains a healthy gross profit margin of 47% and analysts forecast 24% revenue growth for the current year. This call is scheduled to take place in late April 2025.

The announcement comes amidst broader industry trends toward onshoring, national security concerns, and the demand for higher product customization, which have been driving forces behind Nano Dimension’s business strategy.

The company’s statement includes forward-looking remarks that involve risks and uncertainties, cautioning that actual results may differ materially from those projected. These forward-looking statements are based on management’s current expectations and are subject to change.

Nano Dimension has a history of filing its annual reports with the Securities and Exchange Commission (SEC), with the most recent on March 21, 2024, which includes detailed discussions of risk factors that could affect the company’s business and financial results.

The information for this article is based on a press release statement from Nano Dimension Ltd.

In other recent news, Nano Dimension Ltd. has announced a new strategic direction with a $150 million share repurchase program, aiming to improve financial performance and address investor concerns. The company reported preliminary fourth-quarter 2024 revenues of approximately $14.6 million and full-year revenues of $57.8 million, indicating a slight year-over-year increase. Additionally, Nano Dimension is involved in ongoing regulatory reviews and litigation concerning mergers with Desktop Metal and Markforged Holding Corporation. The Delaware Court of Chancery recently ordered Nano Dimension to complete its merger with Desktop Metal, rejecting Nano’s counterclaims and mandating a national security agreement with the Committee on Foreign Investment in the United States. Meanwhile, Markforged reported a decrease in fourth-quarter revenue to $22.4 million but saw a reduced net loss of $11.9 million compared to the previous year. Nano Dimension has also appointed Ofir Baharav as its new CEO to drive merger synergies following strategic changes, including cost reductions and governance enhancements. The company has further strengthened its board with the addition of David Stehlin, while Kenneth Traub has resigned following his new role at Comtech Telecommunications Corp.

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