Desktop Metal, Inc. (NYSE:DM), a player in the special industry machinery sector, announced Thursday the approval of a merger agreement with Nano Dimension (NASDAQ:NNDM) Ltd., a move that could reshape the competitive landscape of the 3D printing industry. The decision was made during a special meeting of stockholders held on Monday.
The Burlington (NYSE:BURL), Massachusetts-based company disclosed in its latest 8-K filing with the Securities and Exchange Commission that the merger proposal received the affirmative vote of a majority of the outstanding shares entitled to vote. A total of approximately 63.2% of the outstanding shares participated in the vote, with 20,215,961 votes for, 746,279 against, and 57,590 abstentions.
In addition to the merger approval, Desktop Metal's shareholders also voted in favor of the advisory compensation proposal related to executive compensation in connection with the merger. This proposal received 13,952,950 votes for, 1,767,608 against, and 5,299,272 abstentions.
The merger agreement, initially announced on July 2, 2024, involves Desktop Metal and Nano Dimension Ltd ., along with Nano Dimension USA Inc. and its subsidiary Nano US I, Inc. This strategic move is anticipated to combine Desktop Metal's expertise in the 3D printing space with Nano Dimension's capabilities, potentially creating a more formidable entity in the industry.
The adjournment proposal, which would have allowed the meeting to be adjourned to solicit additional proxies if there were not enough votes to approve the merger, was not presented to the stockholders due to the sufficient votes already in place to approve the merger agreement.
The approval marks a significant milestone for Desktop Metal, which has been listed on the New York Stock Exchange under the ticker symbol DM. The company's business address is 63 3rd Avenue, Burlington, MA 01803, and it operates under the jurisdiction of Delaware.
This merger is part of the ongoing consolidation in the 3D printing industry, as companies seek to enhance their technological capabilities and market reach. The information regarding this corporate development is based on a press release statement.
In other recent news, Desktop Metal shareholders have approved a merger with Nano Dimension, with over 96% of votes cast in favor of the agreement. The merger is expected to close within the fourth quarter of 2024, pending further regulatory approvals. A significant development in the additive manufacturing industry, the merger aims to establish a profitable industry leader, with a subsequent business combination with Markforged Holding Corporation also anticipated.
Simultaneously, Desktop Metal reported a decrease in its Q2 2024 revenue to $38.9 million, primarily due to reduced hardware sales. However, the company improved its adjusted EBITDA by $1.8 million compared to the same period last year. In contrast, Nano Dimension reported a 21% increase in third-quarter revenue, reaching $14.7 million.
In addition to these financial developments, Desktop Health, a division of Desktop Metal, announced that its Flexcera family resins have been qualified for use with LuxCreo 3D printing systems. This allows LuxCreo's dental 3D printers to produce various dental prosthetics using Flexcera's FDA 510(k) cleared nanoceramic polymers. The dental 3D printing market, where Flexcera and LuxCreo are now positioned, is expected to reach $8.1 billion by 2029.
InvestingPro Insights
As Desktop Metal (NYSE:DM) moves forward with its merger with Nano Dimension Ltd., investors should be aware of some key financial metrics and insights provided by InvestingPro. The company's market capitalization stands at $156.53 million, reflecting its current position in the 3D printing industry.
InvestingPro data shows that Desktop Metal's revenue for the last twelve months as of Q2 2024 was $174.63 million, with a concerning revenue growth decline of -13.66% over the same period. This aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year, which could be a factor driving the merger decision.
Another InvestingPro Tip highlights that the company is quickly burning through cash, which may explain the strategic move to merge with Nano Dimension. This cash burn rate, combined with the tip that Desktop Metal may have trouble making interest payments on debt, underscores the potential financial motivations behind the merger.
It's worth noting that InvestingPro offers 11 additional tips for Desktop Metal, providing a more comprehensive analysis for investors interested in deeper insights into the company's financial health and market position as it enters this new phase.
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