BURLINGTON, MA - Desktop Metal, Inc. (NYSE:DM), a leader in the 3D printing industry, has announced new tax guidelines in preparation for its impending merger with Nano Dimension Ltd (NASDAQ:NNDM). The merger, which is set to close in the fourth quarter of 2024, is subject to customary closing conditions including regulatory approvals.
The company disclosed the information in a recent SEC Form 8-K filing, highlighting the release of a letter to stockholders on its investor relations website. The letter outlines the necessary documentation for Israeli withholding tax application related to the merger's anticipated closure.
Desktop Metal, originally known as Trine Acquisition Corp. before its name change on October 1, 2018, is incorporated in Delaware. It operates within the Special Industry Machinery sector, under the SIC code 3559.
The SEC filing also mentions that the information provided, including the attached exhibit of the Tax Guidelines, is furnished and will not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, nor will it be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 or the Exchange Act.
The forward-looking statements in the SEC report indicate expectations for the merger's completion timing but also acknowledge risks and uncertainties that could affect the transaction. These include potential events that might lead to the termination of the proposed transaction and the ability to satisfy closing conditions.
Desktop Metal's General Counsel and Corporate Secretary, Larry O'Connell, signed off on the SEC filing dated today, reaffirming the company's commitment to transparency and regulatory compliance as it moves forward with the merger process.
In other recent news, shareholders of Desktop Metal have approved a merger with Nano Dimension, a significant development in the 3D printing industry. The merger, which received an overwhelming majority of votes, is expected to close within the fourth quarter of 2024, pending further regulatory approvals. This strategic move combines Desktop Metal's expertise in the 3D printing space with Nano Dimension's capabilities, potentially creating a more formidable entity in the industry.
In financial updates, Desktop Metal reported a decrease in its Q2 2024 revenue to $38.9 million, primarily due to reduced hardware sales. However, the company improved its adjusted EBITDA by $1.8 million compared to the same period last year. On the other hand, Nano Dimension reported a 21% increase in third-quarter revenue, reaching $14.7 million.
In other developments, Desktop Health, a division of Desktop Metal, announced that its Flexcera family resins have been qualified for use with LuxCreo 3D printing systems. This allows LuxCreo's dental 3D printers to produce various dental prosthetics using Flexcera's FDA 510(k) cleared nanoceramic polymers. The dental 3D printing market, where Flexcera and LuxCreo are now positioned, is expected to reach $8.1 billion by 2029.
InvestingPro Insights
As Desktop Metal prepares for its merger with Nano Dimension, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at $153 million, reflecting its current position in the 3D printing industry. However, Desktop Metal faces significant challenges, as evidenced by its negative revenue growth of -14.97% over the last twelve months and a concerning operating income margin of -126.36%.
InvestingPro Tips highlight that Desktop Metal is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors could potentially impact the merger process and the company's post-merger financial stability. Additionally, analysts anticipate a sales decline in the current year, which aligns with the negative revenue growth trend observed.
It's worth noting that Desktop Metal's stock price has taken a significant hit, with a -44.65% total return over the past six months. This performance may influence shareholder sentiment regarding the merger.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Desktop Metal, providing a deeper understanding of the company's financial health and market position as it navigates this crucial merger.
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