Recently, we have been writing quite a lot about Desktop Metal on our website, not necessarily in an optimistic context. This time it’s about finances again, but it’s not yet clear whether it’s good or bad. Either way, as reported by 3D Printing Industry, Desktop Metal prepared an issue prospectus for financial instruments worth $250 million and submitted it to the US Financial Supervisory Commission.
Now it would be necessary to decipher what exactly is behind this operation. The prospectus concerns the so-called “mixed shelf offering”, which has no direct translation into Polish, but involves the issuance of financial instruments, but without selling them. In other words, they are registered with a financial institution, but will be made available on the market at the request of the entity that issued them. The “Mixed” element is responsible for the fact that the package contains different types of instruments, in this case ordinary shares, preference shares, debt instruments such as bonds or guarantees. Therefore, it seems that Desktop Metal is preparing for the possibility of needing to obtain additional funds. Hopefully not to the rescue. The market did not evaluate these actions optimistically and so far Desktop Metal’s shares have fallen by almost 25% in the last five days.
It is worth recalling here that all events surrounding Desktop Metal. At the end of 2023, plans to merge with Stratasys were abandoned after the Stratasys shareholders’ meeting did not approve the transaction. Moreover, Desktop Metal, following the latest trend in the technological environment, last month implemented a savings program of over $50 million consisting of reducing employment by 20%. The situation is developing and we remain vigilant.
Source: www.3dprintingindustry.com