What happened

Shares of Nano Dimension (NASDAQ:NNDM) have plunged today, down by 26% as of noon EST, after the company priced a direct offering. The price was well below yesterday's closing price.

So what

The 3D-printing technology company priced a direct offering of 25 million American depository shares (ADSs) at $4 per ADS, representing a discount of over 30% to yesterday's closing price of $5.86. The deal will raise $100 million in gross proceeds for Nano Dimension before fees and other expenses related to the offering are factored in.

Nano Dimension DragonFly in use

Nano Dimension's DragonFly system. Image source: Nano Dimension.

Nano Dimension intends to use the net proceeds for working capital and general corporate purposes, which could potentially include acquisitions and other strategic opportunities.

The stock had surged earlier this week after Nano Dimension received a notice of allowance for a U.S. patent related to the fabrication of printed circuit boards (PCBs).

Now what

The news comes about a week after the company reported disappointing third-quarter earnings results. The business has been under pressure -- sales fell 80% last quarter -- due to the COVID-19 pandemic, which has affected demand for the company's DragonFly industrial 3D printer. Management remains confident that demand will bounce back after the public health crisis is over.

Nano Dimension finished the third quarter with $45.7 million, up from $3.9 million at the end of 2019. The company attributed the increase in cash to other offerings throughout the year. The latest offering will raise substantial capital but also dilute existing shareholders.