Israeli electronic components 3D company Nano Dimension (Nasdaq: NNDM) has raised a further $500 million, bringing the total amount raised in eight rounds since the end of September 2020 to almost $1.5 billion.
despite the fact that Nano Dimension is still a loss making company, the tech boom on Wall Street sees investors solidly behind the Israeli company. The latest capital raised is through 39.1 million shares at $12.80 per share, an 18% discount on the company's closing price on Wall Street at the end of the last trading session. This is up from $9.50 when Nano Dimension raised $657 million last month.
As in previous fund raisings, ThinkEquity acted as sole placement agent for the offering, which was supported by Advs. Oded Har Even, Reut Alfiah and David Huberman of the Sullivan & Worcester law firm.
Nano Dimension delisted from the Tel Aviv Stock Exchange last year, before the major jump in the company's share price, which followed a technological breakthrough with the company's DragonFly device now able to print 3D printed circuit boards (PCBs). Since its low-point in April 2020, Nano Dimension's share price has risen 2,300% and it has a market cap of $3.3 billion. Yet in the first nine months of 2020, Nano Dimension's revenue was just $1.4 million, down 72% from the corresponding period of 2019, while its net loss widened to $31 million, from $7 million in the first nine months of 2019.
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 earlier this month, "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."
Published by Globes, Israel business news - en.globes.co.il - on February 16, 2021
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