But Nano Dimension’s situation has attracted some controversy from some investors. So much so that the company just released a statement as “A Response to Recent Shareholder Activity and the General Meeting”, where it stated that it “has become a target and temptation for entities with an interest in taking over the Company for their business or personal needs. Their actions suggest they have the intention of dismantling the Company.”
According to a recent press release by Nano Dimension, its capital has become a target and temptation for entities with an interest in taking over the Company for their business or personal needs. Their actions suggest they have the intention of dismantling the Company.
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“We, Nano Dimension management, are aware of this and will protect the Company from any attempt to harm or impose measures that are not in the best of the Company and its shareholders. In the coming months, there may be further attempts to interrupt the Company’s conduct of business with the intention of inhibiting the Company’s ability to execute on its vision and strategy. Such attempts may be made based on the interests of specific shareholders and competitors, who are more focused on seizing Nano Dimension’s capital for their own benefit and their business affairs.”
Yoav Stern, Chairman & CEO, reassured investors that the company’s business is sound: “The comparable increases of revenue of Q3 2022 over Q3 2021 (646%) and year-to-date over last-year-year-to-date (964%) – highlight the business’ continued success in growing dramatically, better than our expectations as expressed last year. We also finished the third quarter with a record backlog of approximately $9M. All our product lines’ revenue grew organically except for additive electronics machines in Europe: as a result of the Russia-Ukraine war, our revenues in Russia and Poland were reduced in the first 9 months of 2022 by approximately $1.5M (75%) compared to the same period in 2021.
The company’s goal of manufacturing entire integrated products, by combining end-use materials such as ceramics and metals, with electronics and micro parts, is fascinating and yet still very far away from full implementation and scalability. Just like Desktop Metal and BICO, Nano Dimension should try to acquire more companies to build its real revenue generation capabilities in the short term but finding companies that fit within this strategy is not going to be easy.
Against the tide
There are also similarities to BICO, the company founded by Erik Gatenholm. The company also raised several hundred million by going public (on the Swedish NASDAQ) and its stock is down more than 80% from its peak price, however, it is trading significantly higher than the IPO. BICO also promises full integration of biotechnologies to increasingly automate and industrialize biotechnologies.
This transaction demonstrates the success in supporting academic institutions as well as end users of this technology (especially in the aerospace & defense segment), which are most often at the forefront of innovation. Northeastern University will be the first Massachusetts-based university to acquire this technology. Nano Dimension moved its US-based offices to the Boston area earlier this year to put its hi-tech solutions at the center of one of the world’s leading innovation hubs. The aerospace company is the ninth served by Nano Dimension’s products.
Shulman ultimately argues that Mr. Stern’s allies who sit on the Board of the company will help the Nano Dimension CEO take over the company at an advantageous price. Whether this will benefit or hurt investors remains to be seen.
This is a strong statement and not common to see from a public company. While the AM industry is young, with many players still looking to consolidate, and some “unorthodox” communication is to be expected, the story of Nano Dimension is a complicated one.
As an AM market research agency and trade publication, 3dpbm focuses its own analysis to its understanding of the company’s products and market potential. The sales of Nano Dimension’s Dragonfly electronic 3D printer have been increasing but the installed base is still limited to a couple of hundred systems worldwide. The company sold a significant number of machines in 2022 (69, as per Stern’s revelations earlier in this story) but this figure is still far too low for Nano Dimension to start generating profits.
CTech a technology news site by Calcalist, Israel’s leading financial daily, sheds some light on the financial aspects of this matter. “The frustration of the investors in Nano Dimension – CTech’s Sophie Shulman writes – is mainly due to the fact that the company raised $1.5 billion in the last year and a half and promised to make strategic purchases, only to not make a single deal that would fundamentally change its business situation. As a result, it is also traded at a value of $610 million, half of the value of the cash in its coffers, which is at $1.2 billion.
Admatec and Nano Fabrica also have interesting technologies and products, with the first offering stereolithography-based AM of metals and ceramics and the second offering micro-stereolithography. These are both market segments with very high potential but still niche applications.