3D printer manufacturer Nano Dimension (Nasdaq: NNDM; TASE: NNDM) will attempt to raise $10 million in an offering of American depository shares (ADS) that will follow its share on the TASE. Each ADS will represent five Nano Dimension shares, whose price at the close of yesterday's trading was NIS 6.20, making one ADS worth $8.20. Nano Dimension is dual-listed on the TASE and the Nasdaq small cap exchange at a $61 million market cap. After the offering is completed, investors in the offering will hold 13% of the company's share capital.
The underwriters aiding Nano Dimension are National Securities Corporation and Lake Street Capital. According to the prospectus, Nano Dimension expects a net $8.8 million from the offering, which is likely to increase to $10.3 million if the underwriters exercise their green shoe option to buy more shares. Nano Dimension had $5.8 million in cash and investments at the end of the second quarter.
The company is earmarking the money to be raised for several purposes. $2 million will be allocated to expanding the marketing and sales team for the DragonFly2020 printer, and the same amount will be included in the costs of printer production and ink. $1 million will be used to expand the company's production capacity for ink and perishable products involving printers. The company will use the remainder for working capital and general business needs, including the possible purchase of intellectual property and other products.
Managed by CEO Amir Dror and chairman Itschak Shrem, Nano Dimension develops 3D printers for the printed circuit board (PCB) prototype market. The company became listed on the TASE through a merger with stock exchange shell ZBI in 2014, and its share has zoomed 200% since then. The company was also recently listed on Nasdaq. The company had no revenue in the first half of the year, a $3.3 million operating loss, and a $3.4 million net loss. Nano Dimension expects its first revenue in the fourth quarter of 2016, after supplying its first printer to beta customer and business partner Fathom.
Several days ago, Edison, a company specializing in paid analyses, published an analysis of Nano Dimension as part of a stock exchange analysis project. The analysis included optimistic assessments, with a NIS 9.93 target price for the share, 60% above the market price. Following this analysis, the company share climbed 18% in recent days.
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2016
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