What happened
Shares of Nano Dimension (NNDM +2.99%) have plummeted today, down by 11% as of 11:20 a.m. EST, after the company priced yet another registered direct offering. Nano Dimension will sell 35 million American depository shares at a price of $9.50 per ADS, a meaningful discount to yesterday's close of $11.43.
So what
The industrials company, which specializes in 3D printing technology for electronics, will raise approximately $332.5 million in gross proceeds. Nano Dimension plans to use the net proceeds from the offering for working capital and other general corporate purposes.
The offering was conducted pursuant to a previous shelf registration statement that Nano Dimension had filed with the SEC. Shelf registration statements allow issuers to offer securities at later dates, giving companies greater flexibility and discretion over the timing and size of deals.
Now what
Nano Dimension regularly conducted direct offerings throughout 2020 as the company's business was hurt by the COVID-19 pandemic. Revenue in the first three quarters of 2020 declined by 72% from the same period in 2019, down to $1.4 million, which led to operating losses widening to $27.2 million.
Image source: Getty Images.
The previous direct offering was priced at $7.50 per ADS at the end of December, raising $250 million in gross proceeds, which followed another $180 million capital raise in early December that priced at $6 per ADS. The company finished the third quarter with $45.7 million in cash on the balance sheet, but Nano Dimension has since raised hundreds of millions of dollars through frequent offerings, including similar deals throughout October and November.
