NNDM Stock Price Falls 24.40%: Why It Happened

By Amit Chowdhry ● Nov 21, 2020
  • The stock price of Nano Dimension Ltd (NASDAQ: NNDM) fell by 24.40% on Friday as it went from $5.86 per share at the previous close to $4.43. This is an explanation of why the stock price fell.

The stock price of Nano Dimension Ltd (NASDAQ: NNDM) — a provider of intelligent machines for the fabrication of Additively Manufactured Electronics (AME) — fell by 24.40% on Friday as it went from $5.86 per share at the previous close to $4.43.  One of the biggest triggers for the stock price falling was the company’s announcement about the pricing of a $100 million registered direct offering. Nano Dimension had priced a direct offering of 25 million American Depositary Shares (“ADSs”) at a price of $4 per ADS. That price represented a 30% premium of the $5.86 per share closing price on Thursday. With the net proceeds from the offering, the company plans to apply it towards working capital, general corporate purposes, and possible business combination transactions.

It has been a rollercoaster of a week for the NNDM stock this week as the price climbed 49.74% between November 16 and the 19, before falling 24.40% again. The climb earlier in the week was partially triggered by the company receiving a notice of allowance for a patent U.S. patent in regards to the fabrication of printed circuit boards, according to Fool.

Earlier this month, the company reported its third quarter financial results. Nano Dimension had reported revenues of $438,000 for the third quarter of 2020 and the Company ended the quarter with a cash and deposits balance of $45,720,000 (including short and long-term unrestricted bank deposits) while the net loss for the third quarter was $20,716,000 and negative adjusted EBITDA for the third quarter was $3,373,000.

“These are not disappointing results per se,” said Yael Sandler, Chief Financial Officer of Nano Dimension. “As we have projected starting April 2020, the reduced revenues in 2020 as a result of the COVID-19 pandemic being prolonged and re-emerging crises, were in fact expected to be lower than we have achieved. Actually, in APAC, the revenues have seemed to already start a modest recovery in the fourth quarter of 2020. We believe that the United States is still in a process of downswing of capital expenditures under the influence of the COVID-19 pandemic, and European prospective customers are sinking back toward a commercial stand still, under the effects of its second wave. As the market stagnation is prolonged, understandably hesitant and/or careful customers tend to delay investments in breakthrough, new prototyping and fabrication technologies of unique Hi-PEDs (High Performance Electronic Devices). While the phenomena are clear and present, they are probably temporary.”