WALTHAM, Mass. - Nano Dimension Ltd . (NASDAQ:NNDM), a supplier of 3D printing solutions, has issued a statement to its shareholders regarding its strategic progress and the upcoming Annual General Meeting (AGM) scheduled for December 6, 2024. The company reported significant achievements over the past year under its current Board and management team, including two major M&A agreements aimed at establishing leadership in digital manufacturing, improved financial and operational performance, and governance enhancements.
The company has urged its shareholders to vote in favor of its proposals at the AGM to continue its strategic plan. Nano Dimension's management highlighted the company's 29% organic revenue growth in 2023 and a 69% reduction in cash burn in the first half of 2024 compared to the same period in 2023. Additionally, Nano Dimension has completed over $160 million in share repurchases since August 2022.
Nano Dimension's board has been restructured to include eight directors, seven of whom are independent, and has separated the roles of Chairman and CEO to strengthen governance. The company has also appointed three new directors with diverse skills to support growth and strategic planning.
The company's letter to shareholders also addresses concerns regarding proposals submitted by Murchinson Ltd., which the company describes as value destructive. Murchinson's proposals reportedly include the removal of two critical board directors and the prevention of M&A transactions above $50 million, which would affect the planned acquisitions of Desktop Metal, Inc. and Markforged Holding Corporation. These acquisitions are expected to close in the fourth quarter of 2024 and the first quarter of 2025, respectively, and are seen as pivotal to Nano Dimension's growth strategy.
Nano Dimension has rejected Murchinson's proposals on legal grounds and has characterized the hedge fund's actions as an attempt to take control of the company for its own benefit. The company warns that Murchinson's proposals could hinder Nano Dimension's ability to maximize long-term value for all shareholders.
Shareholders of record as of October 22, 2024, are entitled to vote at the AGM, with the voting cut-off set for December 1, 2024, at 11:59 p.m. ET. The company has provided resources and further information on its investor relations website and encourages shareholders to vote as early as possible.
This article is based on a press release statement from Nano Dimension.
In other recent news, Nano Dimension Ltd. disclosed its mid-year financial results, showing a 2% year-over-year increase in revenue and a significant 54% reduction in cash burn. The company also revealed plans to acquire Desktop Metal, a transaction expected to close by year-end, valued between $135 million to $180 million. The merger was endorsed by Institutional Shareholder Services (ISS), a leading proxy advisory firm, and has recently cleared the U.S. antitrust hurdle.
Furthermore, Nano Dimension and defense technology company HENSOLDT AG have extended their joint venture, Jetted Additively Manufactured Electronics Sources GmbH (J.A.M.E.S), aiming to promote the adoption of Additively Manufactured Electronics (AME) technology. The company has also allocated $150 million for share buybacks and is working to increase the gross margins of Desktop Metal to achieve a target of 60%. These are some of the recent developments in Nano Dimension's strategic transition towards Industry 4.0 and its consolidation in the additive manufacturing sector.
InvestingPro Insights
To complement Nano Dimension's strategic progress report, recent data from InvestingPro offers additional context for investors. As of the latest available information, Nano Dimension (NASDAQ:NNDM) holds a market capitalization of $506.44 million, reflecting its current position in the 3D printing industry.
InvestingPro data shows that Nano Dimension's revenue for the last twelve months as of Q2 2024 stands at $54.96 million, with a revenue growth of 6.1% over the same period. This aligns with the company's reported organic revenue growth, though it suggests a potential slowdown from the 29% growth mentioned for 2023.
Importantly, two InvestingPro Tips are particularly relevant to the company's current situation:
1. Nano Dimension holds more cash than debt on its balance sheet, which supports the company's ability to pursue strategic initiatives and M&A activities as outlined in their shareholder communication.
2. The company is quickly burning through cash, which contextualizes the importance of the reported 69% reduction in cash burn for the first half of 2024.
These insights underscore the significance of Nano Dimension's focus on financial management and strategic acquisitions. The company's efforts to improve operational efficiency while pursuing growth through M&A align with these financial realities.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide further insights into Nano Dimension's financial health and market position.
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