Please ensure Javascript is enabled for purposes of website accessibility

Why Nano Dimension Stock Plummeted Today

By Evan Niu, CFA - Feb 16, 2021 at 1:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The 3D printing specialist prices another direct offering.

What happened

Shares of Nano Dimension (NNDM -5.53%) have plummeted as much as 10% today after the company priced yet another direct offering. The deal priced at $12.80 per American depositary share (ADS), representing a meaningful discount compared to Friday's closing price of $15.60. As of 12:40 p.m. EST, the stock was down 9%.

So what

Nano Dimension has been regularly conducting direct offerings, raising capital hand over fist. The latest deal is expected to generate proceeds of approximately $500 million before fees and other offering expenses. The industrials company, which specializes in 3D printing for printed circuit boards, plans to use the net proceeds for working capital and general corporate purposes. The previous direct offering was a $332.5 million deal last month.

Red stock chart going down with red numbers in the background

Image source: Getty Images.

Now what

In a letter to shareholders earlier this month, CEO Yoav Stern estimated that the company's 2020 revenue was approximately $3.4 million. At the end of the year, Nano Dimension had $990 million in cash on the balance sheet before factoring in the subsequent capital raises. The COVID-19 pandemic crushed sales of Nano Dimension's DragonFly systems, and the company had expected to post no revenue last year.

Sales started to recover in the second half of 2020, and Nano Dimension plans to use its war chest to accelerate its product roadmap in 2021 as well as fund its acquisition strategy. The company has retained financial advisors in the U.S. and Europe to explore potential acquisition targets.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nano Dimension Ltd. Stock Quote
Nano Dimension Ltd.
NNDM
$2.82 (-5.53%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.