The fun at Nano Dimension has not ended!
Nano Dimension’s corporate struggles continue with a critical upcoming extraordinary meeting of its shareholders.
What’s the background here? Nano Dimension was a huge player in the 3D print world, having raised a massive amount of cash during the pandemic. That cash was used by its management to acquire half a dozen different 3D print companies, attempting to make Nano Dimension a big player.
However, all that acquisition wasn’t returning any profits, and the cash hoard was being burned down. Shareholders revolted, and eventually kicked out the management and replaced the board.
The new board of directors then performed a strategic analysis of what they should do with all the 3D print companies they’d acquired. How could they make some money on the situation?
Their decision was, well, strange: they decided to do two things.
- One: sell all the 3D print assets to others, which they have mostly done.
- Two: Merge with a biotech epigenetics company.
What? They basically are using Nano Dimension’s spot on the stock exchange as a placeholder, and sliding in this biotech operation. That allows the biotech company to get on the stock market without doing the huge expense and time of a proper IPO. It also implies that Nano Dimension believes their only real asset at this point is their stock exchange listing.
But then…
Some stockholders — mainly investment firm Murchison — object to this strategy. They own around eight percent of the company. They disagree with the idea of changing from manufacturing to biotechnology, and want more shareholder control over such a momentous change.
They’ve raised forward several key motions that will be put to shareholders in a July 31 Extraordinary General Meeting. They will vote on whether:
- Three directors should be removed,
- Murchison nominees should replace them,
- Various governance changes should be adopted.
It’s not clear where the vote will go, although it is likely the Nano Dimension management will prevail.
However, if the Murchison path is chosen by shareholders, then the biotech move could be cancelled, and just possibly, Nano Dimension might return to the 3D print world from the limbo where it currently exists.
Via BusinessWire
