What happened

Shares of recent SPAC IPO and 3D printing design library Shapeways (SHPW) are getting sold off by more than 12% Thursday (down 12.2% as of 2:45 p.m. EDT). Curiously, the reason the shares are getting sold is...because Shapeways is selling shares.

So what

In a Securities and Exchange Commission (SEC) filing last night, Shapeways registered some 35.5 million shares for sale, and 4.1 million warrants besides, in connection with its Sept. 29 reverse merger into special-purpose acquisition company (SPAC) Galileo Acquisition and consequent de facto IPO.  

Of the 35.5 million shares that may eventually be sold, 13.8 million are described by Shapeways as shares "issuable upon the exercise of our publicly traded warrants"; 3.6 million are shares "issuable upon the exercise of private warrants ... issued to Galileo Founders Holdings, L.P." Another 548,000 shares are "issuable upon the exercise of private warrants issued to EarlyBirdCapital, Inc.," and  "sponsor warrants" were issued to Galileo to purchase 500,000 shares.

Finally, 17.1 million more shares owned by selling stockholders were registered for sale.

Declining red arrow on a stock chart with a white-checked background.

Image source: Getty Images.

Now what

Although par for the course in SPAC transactions, and not something that should surprise investors who've had the opportunity to watch several recent SPAC transactions run their course by this point, the upshot of all the above is that a tidal wave of new Shapeways shares are preparing to flood the market.

Investors in the company are spooked by the prospect of what this might do to the stock price, and I can't say I blame them.