TORONTO - Murchinson Ltd., a significant shareholder holding approximately 7.1% of Nano Dimension Ltd . (NASDAQ: NASDAQ:NNDM), has nominated two candidates, Robert Pons and Ofir Baharav, for election to the company's Board of Directors at the Annual General Meeting scheduled for December 6, 2024. This move comes as part of Murchinson's ongoing efforts to address what it views as persistent issues in corporate governance and resource allocation within Nano Dimension.
The shareholder's push for change follows a special general meeting in March 2023, where a majority of Nano Dimension's voting shareholders supported the removal of CEO Yoav Stern and other board members. Despite the vote, Murchinson claims that the current board members have not stepped down and accuses the company of engaging in tactics that disenfranchise shareholders.
Murchinson criticizes the board for its handling of the company's finances, including a stagnant share price and substantial share repurchases with little improvement. The firm also takes issue with Nano Dimension's compensation package for its CEO, acquisitions it deems overpriced and misguided, and a general lack of accountability and strategic integration.
The nominees proposed by Murchinson are touted for their independence and relevant experience. Robert Pons is recognized for his corporate governance expertise and history of serving on more than sixteen public company boards. Ofir Baharav, who served as a Nano Dimension director and chairman in the past, brings insights from his work in the technology and 3D printing sector, including a previous role at competitor Stratasys Ltd. (NASDAQ: NASDAQ:SSYS).
Murchinson's proposals also include amendments and additions to Nano Dimension's Articles of Association. The firm intends to present further information to shareholders, aiming to demonstrate that the current board's priorities conflict with shareholder interests.
This report is based on a press release statement and does not reflect the opinions or predictions of the author. The information provided is for general informational purposes and should not be considered an endorsement of Murchinson's views or an investment recommendation.
In other recent news, Stratasys, a global leader in additive manufacturing, has announced several significant developments. The company reported a 14.2% year-over-year decrease in product revenue and a 40% drop in hardware sales. On the other hand, Stratasys experienced a 6.3% increase in consumables revenue, indicating high utilization rates across its installed base of systems. Despite the current challenges, the company projects positive cash flow starting in Q4 2024 and aims to reach $1 billion in revenue by 2026.
Stratasys also launched the TechStyle™ Fabric Alignment Station, a solution aimed at enhancing the accuracy and efficiency of integrating 3D designs with various production technologies in the fashion industry. This new offering is part of Stratasys's commitment to environmentally conscious production practices and innovation in additive manufacturing.
In terms of financial strategy, Stratasys has authorized a new share repurchase program, with plans to buy back up to $50 million of its shares. This action is part of the company's broader plan to optimize cash flow and enhance capital allocation. Concurrently, Stratasys is implementing a restructuring plan, which includes a 15% workforce reduction, expected to save approximately $40 million annually starting in 2025.
Several analyst firms have adjusted their outlook on Stratasys following these developments. Lake Street Capital Markets reduced its price target from $15.00 to $11.00, maintaining a Buy rating. Similarly, Loop Capital cut its target from $9.00 to $7.00, keeping a Hold rating. Meanwhile, Cantor Fitzgerald lowered its target from $23 to $12, while retaining an Overweight rating.
In a separate development, Kamada (NASDAQ:KMDA) Ltd., a pharmaceutical company, has announced plans to hold its Annual General Meeting of Shareholders. This meeting is a routine part of Kamada's corporate governance, providing shareholders the opportunity to vote on various company matters.
InvestingPro Insights
As Murchinson Ltd. pushes for changes at Nano Dimension, it's worth examining the financial health of Stratasys Ltd. (NASDAQ: SSYS), a key competitor mentioned in the article. According to InvestingPro data, Stratasys has a market capitalization of $553.18 million, reflecting its significant presence in the 3D printing sector.
InvestingPro Tips reveal that Stratasys holds more cash than debt on its balance sheet, indicating a strong financial position. This could be particularly relevant in the context of Murchinson's criticism of Nano Dimension's financial management. Additionally, Stratasys' liquid assets exceed short-term obligations, suggesting a healthy liquidity position.
However, it's important to note that Stratasys has not been profitable over the last twelve months, with a negative P/E ratio of -4.74. This aligns with the challenges faced by many companies in the 3D printing industry, including Nano Dimension.
The 3D printing sector's volatility is further reflected in Stratasys' stock performance. InvestingPro data shows that the stock price has fallen significantly over the last three months, with a 21.38% decline. This broader industry trend may provide context for the concerns raised by Murchinson regarding Nano Dimension's share price performance.
Investors considering the 3D printing sector should be aware that InvestingPro offers 11 additional tips for Stratasys, providing a more comprehensive analysis of the company's prospects and challenges.
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