Israeli 3D printing company Nano Dimension (Nasdaq: NNDM), which has raised more than $1 billion in Nasdaq offerings in recent months, is expanding its search for acquisition targets. The company has hired European investment bank CarlSquare to assist in finding attractive acquisition targets in Europe after hiring Needham last year for the same aim in the US.
Nano Dimension president and CEO Yoav Stern said, "Our M&A search over the last two quarters has evolved, as we have expanded its geographical footprint. We are now focusing on two kinds of acquisition targets: One will dramatically expand our go-to-market channels and give us exposure to vertical markets while the other targets include a set of companies that have transformative technologies and products which are complementary to our product roadmap.
He added, "The present ubiquity of special purpose public acquisition vehicles (SPACs), especially in the US market, is causing price surges of certain targets; hence, we are using the opportunity to filter out valuations that don’t fit our business model. Since we have strong cash reserves, we are accelerating our technology and product development forward beyond the plans of mid-2020. I am confident that with the help of our investment banking partners, we will expedite the M&A process to synergistically support our growth plans."
Nano Dimension's share price has risen 2160% since April 2020 with some assistance from the RobinHood app, which recommended the company's share several times over the past year. Nano Dimension's share has also been recommended by hedge fund guru Cathie Wood.
The sharp rise in the share price has come even though Nano Dimension has negligible revenue and is not profitable. In the first nine months of 2020, the company's revenue was $1.4 million, 72% down on the corresponding period of 2019 and Nano Dimension recorded a net loss of $31 million, compared with a net loss of $7 million in the same period of 2019.
Nano-Dimension's share price is up 3.68% in premarket trading today to $15.21, giving a market cap of $2.6 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 3, 2021
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