3D printer company Nano Dimension (Frankfurt: 2N5B) has raised no less than $1.5 billion in the past few months, and in the conference call held last week following the release of the company's 2020 financials, CEO Yoav Stern explained the rationale.
"Obviously, the company has changed dramatically," Stern said, but stressed that each time money was raised it was at a higher share price. "We did not raise money at dilutive prices," he said, adding "We basically mounted our armor in order to prepare for what we perceive is going to happen in the near future."
Stern said that with the cash it had raised, Nano Dimension was in a better position than that of its competitors, and that its positioning would strengthen in relation to at least some competitors when stock prices fall when the current wave of enthusiasm over investment apps such as Robinhood fades. Once the market returns to normal, Stern said, "we would like to make a very, very effective use of our business plan within the industry and the cash fuel that we have to execute it."
For the time being, though, Stern does not see market prices falling, and he said that the company had no intention of accelerating its M&A plans and paying too much money. "If you are not patient and waiting to see something in a quarter or two, don't invest in Nano Dimension," he said.
Nano Dimension, which deals in 3D printers for electronic components, had revenue of $3.4 million in 2020, down from $7.1 million in 2019. Its net loss grew to $48.5 million from $8.4 million in 2019.
Nano Dimension has a market cap of $2.8 billion, meaning that the market values its business at about $1.3 billion. Its share price has shot up by more than 1,000% in the past year, partly boosted by private investors via Robinhood.
Stern received generous compensation in 2020, to the tune of $14.6 million, or which $14 million was stock-based. At the end of the year the company had 87 employees, most of them in Israel.
Published by Globes, Israel business news - en.globes.co.il - on March 16, 2021
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