Nano Dimension outlines new strategy, authorizes buyback

WALTHAM, Mass. - Nano Dimension Ltd . (NASDAQ:NNDM), a provider of digital manufacturing solutions, announced a new strategic direction and a $150 million share repurchase program, indicating a shift towards addressing investor concerns and improving financial performance. According to InvestingPro analysis, the company appears undervalued at its current market capitalization of $493 million, with a strong balance sheet showing significantly more cash than debt.

Interim CEO Julien Lederman acknowledged the need for change at Nano Dimension, citing a persistent negative enterprise value and a stock decline of over 80% since early 2021. The company's market value has been trading at roughly half of its net cash and book value, highlighting investor skepticism regarding the firm's direction and value. InvestingPro data reveals a price-to-book ratio of 0.57 and an impressive current ratio of 28.65, indicating substantial financial flexibility. Want deeper insights? InvestingPro offers 12 additional key tips about NNDM's financial health and growth prospects.

To address these issues, Lederman outlined a renewed focus on shareholder interests, return on investment, and prudent expense management. The company aims to accelerate growth and profitability by leveraging its technological expertise in high-performance advanced manufacturing segments.

In a move reflecting this new commitment to governance and financial discipline, the company's board allowed a previously implemented Shareholder Rights Plan, also known as a "poison pill," to lapse on January 25th, 2025. Additionally, Nano Dimension's core business, prior to any 2025 mergers, is expected to become cash flow positive on an adjusted basis starting in the fourth quarter of 2025.

The board has also authorized a share repurchase program of up to $150 million, following Israeli Companies Law procedures, which includes a 30-day waiting period for potential creditor objections. The repurchases may be executed through various methods depending on market conditions and other factors, and the company is not obligated to repurchase any shares.

Nano Dimension also provided preliminary revenue figures for the fourth quarter of 2024, reporting unaudited consolidated revenues of approximately $14.6 million, and approximately $57.8 million for the full year. These figures represent a nearly flat quarterly performance and a 3% increase year-over-year, respectively. The final audited results may vary from these preliminary estimates. According to InvestingPro's comprehensive analysis, available in the Pro Research Report covering 1,400+ US stocks, analysts expect significant sales growth in the current year, with the company projected to achieve profitability.

The company is currently engaged in ongoing regulatory reviews and litigation related to definitive merger agreements with Desktop Metal, Inc. (NYSE:DM) and Markforged Holding Corporation (NYSE:MKFG), which could affect the timing or feasibility of these mergers.

This announcement is based on a press release statement and reflects the company's efforts to reposition itself in the market and regain investor confidence.

In other recent news, Nano Dimension Ltd. is facing a lawsuit filed by Desktop Metal, Inc., over a pending merger with Markforged Holding Corporation. The lawsuit alleges that Nano Dimension breached a previous merger agreement with Desktop Metal by entering into a new agreement with Markforged. Despite this, Nano Dimension has shown strong financial management, with aggressive share buybacks and a current ratio of 28.65.

In addition to the pending merger, Nano Dimension has experienced several recent developments, including the appointment of Julien Lederman as Interim CEO, a 29% organic revenue growth in 2023, and a 69% reduction in cash burn in the first half of 2024 compared to the same period in 2023. Also, the company completed over $160 million in share repurchases since August 2022.

Furthermore, Nano Dimension has made significant changes to its Board of Directors with Ofir Baharav appointed as Chairman and Robert Pons, Dr. Joshua Rosensweig, and Kenneth Traub serving as members. These changes followed the resignation of several previous members.

Finally, despite facing opposition from Murchinson Ltd., Nano Dimension and defense technology company HENSOLDT AG extended their joint venture, Jetted Additively Manufactured Electronics Sources GmbH (J.A.M.E.S), aiming to promote the adoption of Additively Manufactured Electronics (AME) technology.

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