The share price of 3D printer manufacturer Nano Dimension (Nasdaq: NNDM; TASE: NNDM) surged more than 15% today on lively trading after the company announced today that it was entering the Chinese market. In two sessions, the share price has risen 25%.
Nano Dimension, led by CEO Amit Dror, signed a strategic partnership agreement with the AURORA Group, the principal shareholder in General Integration Technology, a Chinese provider of 3D technology and distributor of 3D printers.
AURORA, which will market and sell Nano Dimension's DragonFly 2020 Pro 3D printers to customers in China, also purchased a second printer of this type. The price of the printer is believed to be around $200,000.
Nano Dimension's printers are capable of printing various electronic components. The company's market share price has declined by nearly 60% over the past year, pushing its market cap down to NIS 173 million ($47 million).
Nano Dimension began reporting sales of the printer and its ink to customers in the fourth quarter of 2017 and last month reported that it had been approved as an authorized supplier for US government and defense companies. The company announced the sale of a printer to one of the 10 largest defense firms in the US.
"China is one of the world’s largest and most important electronics manufacturing and design markets, and establishing the correct foothold in the market is key for Nano Dimension," Dror said. "AURORA has years of operating experience in the manufacturing sector, and with its extensive resources and unique network of 1,500 offices, 300,000 customers, including more than 3,000 customers in electronics industries, we believe it is very well positioned to give us fast market access to realize the full potential of the DragonFly 2020 Pro in China."
Nano Dimension finished the first quarter of the year with a $106,000 gross profit on $635,000 in revenue, 438% more than in the corresponding quarter of 2017. The company's operating loss totaled $4.1 million, 5% more than in the corresponding quarter in the preceding year.
Nano Dimension had $14.7 million in cash at the end of March after completing a recent $12 million financing round on Nasdaq.
Nano Dimension made headlines six weeks ago when its co-chairperson, Itschak Shrem, was arrested. Shrem took a vacation from this job, leaving the company's other co-chairperson, Avi Reichental, as sole chairperson.
Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2018
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