Why Nano Dimension Stock Crashed on Tuesday
The Delaware Court of Chancery just told Nano Dimension: no take-backs.
Only nine months ago, Nano Dimension (NASDAQ: NNDM) stock was riding high. The 3D printing company had just released preliminary second-quarter results showing an 11% sequential increase in sales, and announced plans to buy rival Desktop Metal (NYSE: DM) for $183 million -- $5.50 per share.
Nano Dimension, however, soon developed cold feet on the deal, and tried to back out.
By December, the matter was already before the courts, with Desktop Metal suing Nano Dimension for failure to "use reasonable best efforts to obtain regulatory approval as soon as practicable in connection with the merger agreement between the parties," and demanding "specific performance" -- essentially, asking the court to order Nano Dimension to complete the merger, and hand over the cash.
