3D printing company’s large share offering prices at deep discount
Shares of Nano Dimensions Ltd. slipped in volatile trading Wednesday, after a more-than four-fold rocket ride in the prior session, as the 3D printing company’s large equity offering priced at a substantial discount.
The U.S.-listed stock
fell 3.1% in midday trading, after being down as much as 10.6% and up as much as 43.8% in intraday trading. Volume swelled to 106.7 million shares.
On Tuesday, the stock had blasted 341.7% higher on massive volume of 331.9 million shares — the full-day average was just 1.7 million shares — after the company and Germany’s Hensoldt announced a new way to use 3D printing to assemble high-performance electronics components. The gain and volume were easily one-day records for the stock, which began trading in mid-2015.
Wednesday’s gain came despite the company announcing a registered direct offering of 17.95 million American Depositary Shares (ADS), which represented 67% of the shares outstanding, priced at $2.00 per ADS. That price was 41.2% below Tuesday’s closing price of $3.40.
The gross proceeds from the offering were $35.9 million. Although that is a lot less than the proceeds would have been at Tuesday’s closing price, they were $22.1 million more than what they would have been if the offering priced at Monday’s closing price of 77 cents.
The company said it plans to use the net proceeds for working capital and for other general corporate purposes. The closing of the offering is expected to take place on May 22.
The stock’s historic rally comes after a steady decline over the past five years, which led to the need to execute a 1-for-10 reverse stock split in October 2019 to regain compliance with Nasdaq listing standards.
And in December 2019, the company announced new leadership, as “veteran turnaround executive” Yoav Stern was named chief executive, to succeed co-Founder Amid Dror, who was moved to the role of customer success officer reporting to Stern.
The company also named Ofir Baharav as its new chairman to replace the retiring Avi Reichental.
Before this week, the previous record one-day blip up in the stock’s chart was a 101.4% surge on 4.6 million shares on June 11, 2018, when the company announced it achieved U.S. Government Certified Vendor Status, which allows the company to do business with government agencies. The company also announced a second purchase of a 3D printed electronic system by a “top 10, defense company.”
The stock has now climbed 30% year to date, but has still lost 43% over the past 12 months. In comparison, the Tel Aviv 125 Index
has slipped 1.8% over the past year while the S&P 500 index
has gained 4.9%.