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Desktop Metal becomes latest AM company to receive NYSE listing notice

Markforged received the same notice on on November 20th. Both companies intend to remain listed

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After several companies, including its most direct competitor Markforged, Desktop Metal, Inc. (NYSE: DM) has become the latest AM company to receive notice from the New York Stock Exchange (NYSE) on November 22, 2023, indicating that Desktop Metal is not in compliance with NYSE’s continued listing standards because the average closing price of Desktop Metal’s common stock was less than $1.00 over a consecutive 30 trading-day period. Markforged received the same notice on November 20th. In both cases, the notice does not result in the immediate delisting of Desktop Metal’s common stock from the NYSE.

Under NYSE rules, Desktop Metal has a period of six months from receipt of the notice to regain compliance with the NYSE minimum stock price listing requirement. Desktop Metal has notified the NYSE of its intent to cure the stock price deficiency and return to compliance with the NYSE continued listing standards. The stock price has marginally bounced back since the notice was received but it is still well below $1.

Desktop Metal has become the latest AM company to receive a listing notice from the NYSE. Markforged received the same notice last month

The company intends to consider available alternatives, including, but not limited to, a reverse stock split, subject to stockholder approval no later than at Desktop Metal’s next annual meeting of stockholders, if necessary, to cure the stock price non-compliance. Under the NYSE’s rules, if Desktop Metal determines that it will cure the stock price deficiency by taking an action that will require stockholder approval at its next annual meeting of stockholders, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days.

Desktop Metal’s common stock will continue to be listed and trade on the NYSE during this cure period, subject to Desktop Metal’s compliance with other NYSE continued listing standards.

Markforged was notified for the same reason by the NYSE on November 20th, citing Rule 802.01C of the NYSE’s Listed Company Manual relating to the minimum average closing price of the Company’s common stock required over a consecutive 30 trading-day period. In this case also, the notice does not result in the immediate delisting of the Company’s common stock from the NYSE.

Desktop Metal has become the latest AM company to receive a listing notice from the NYSE. Markforged received the same notice last month

The Company can regain compliance at any time within the six-month cure period if, on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. Just like Desktop Metal, Markforged intends to remain listed on the NYSE, and said it will consider the best available alternatives, including, but not limited to, a reverse stock split, subject to stockholder approval, if necessary to regain compliance.

 

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Davide Sher

Since 2002, Davide has built up extensive experience as a technology journalist, market analyst and consultant for the additive manufacturing industry. Born in Milan, Italy, he spent 12 years in the United States, where he completed his studies at SUNY USB. As a journalist covering the tech and videogame industry for over 10 years, he began covering the AM industry in 2013, first as an international journalist and subsequently as a market analyst, focusing on the additive manufacturing industry and relative vertical markets. In 2016 he co-founded London-based VoxelMatters. Today the company publishes the leading news and insights websites VoxelMatters.com and Replicatore.it, as well as VoxelMatters Directory, the largest global directory of companies in the additive manufacturing industry.

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