3D printers manufacturer Nano Dimension (Nasdaq: NNDM; TASE: NNDM) announced on Friday a $12 million issue of American Depository Shares (ADS), with each ADS equivalent to five ordinary shares in the company. The price per ADS in the offering was set at $2, a 39% discount on the previous day's closing price and on the average share price since the beginning of the year. Nano Dimension's ADS price plummeted 30% on Nasdaq on Friday in response, closing at $2.30, reflecting a $26 million market cap. The company's share price went on to drop 16.7% in Tel Aviv Stock Exchange (TASE) trading today. The financing round was at a large discount, but the company should be credited for having managed to carry out a secondary offering at a volatile and unpredictable time.
Nano Dimension is issuing six million new ADS, garnering proceeds of $11.1 million, after deducting charges related to the offering. The volume of the offering is likely to rise to $13.8 million, because the company allocated 900,000 more ADS to the underwriters, who have a 45-day option to purchase them. The underwriters are National Securities Corporation and Lake Street Capital Markets - the same firms that accompanied Nano Dimension's offering 18 months ago at $6.50 per ADS. Advocate Oded Har-Even of the Zysman, Aharoni, Gayer & Co. (ZAG S&W) law firm represented Nano Dimension.
As part of the offering, Nano Dimension directors announced their intention to spend an aggregate $300,000 on buying the company's ADS. As far as is known, most of the investors in the offering were from the US, but there were also investors from Israel.
Nano Dimension had $12 million in cash as of the end of the third quarter of 2017. Publication of the company's results for the fourth quarter of 2017 and the year is slated for March 15. Nano Dimension, managed by CEO Amir Dror, made its first sales in 2017, which totaled $414,000 in January-September, a period in which the company posted a $13.7 million net loss. The company recently announced the appointment of Avi Reichental as co-chairperson, together with previous chairperson Itschak Shrem.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 18, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018