Over a period of a few months, in late 2020 and early 2021, 3D printer company Nano Dimension (Nasdaq: NNDM) carried out no fewer than eight equity offerings, raising close to the fantastic sum of $1.5 billion. The share price in these offerings rose constantly, from $2.3 in the first to $12.8 in the last.
Altogether, the share price of Nano Dimension, which deals in printing of electronic components, soared by more than 2,000% during the period, reaching a peak last February of $16.7, which gave the company a market cap of $3.3 billion.
The share price may have boomed, but the company's financial results remained modest, to say the least. In the first three quarters of 2021, revenue totaled $3 million, double the figure for the corresponding period of 2020, and it posted a net loss of $41.2 million, which compares with a loss of $31.1 million in the corresponding period.
What powered the stock despite the unimpressive results was apparently private investors trading via the Robinhood app, on which it was declared a recommended stock, and those following hedge fund manager Cathie Wood.
Since then, however, Nano Dimension has lost about 80% of its value, falling to a share price of $3.9, giving it a market cap of under $1 billion. In fact, the company's market cap is now lower than the amount of cash it held at the end of the third quarter, which was nearly $1.4 billion.
With the share price so weak, Nano Dimension CEO Yoav Stern has raised his stake to 12.7%, worth $126 million.
Fourth acquisition
Nano Dimension signaled its direction even before the offerings fever when it hired investment bank Needham to find it acquisition targets in the US, and later hired a German investment bank to find acquisitions in Europe. Within the past few months, Nano Dimension has made three acquisitions, and this week it announced a fourth.
The latest acquisition is of British company Global Inkjet Systems, for which Nano Dimension paid $18.1 million. Global Inkjet Systems shareholders will receive further consideration in the future, of between $1.3 million and $10.7 million, subject to reaching financial goals in 2022 and 2023. The acquired company was founded in 2006. Nano Dimension's announcement of the acquisition describes it as "a leading developer and supplier of high-performance control electronics, software, and ink delivery systems." It has 130 customers, and in 2021 its revenue totaled $10 million, with a gross margin of 51%.
As mentioned, this is Nano Dimension's fourth acquisition in a matter of months, all of them small in relation to the huge amount of capital the company has raised. One of the acquisitions, last April, was of Israeli company DeepCube, in a combined cash and shares deal worth $70 million.
DeepCube founders Dr. Eli David and Yaron Eitan are directors of Nano Dimension. DeepCube deals in machine learning and deep learning, and has developed an algorithm for improving data analysis and implementation of artificial intelligence, a solution that can be incorporated into hardware to boost speed and reduce memory use.
Published by Globes, Israel business news - en.globes.co.il - on January 6, 2022.
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