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Desktop Metal to effect a reverse stock split

DM common stock expected to begin trading on a 1-to-10 split-adjusted basis on June 11, 2024

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The Board of Directors at Desktop Metal has approved a reverse stock split of the company’s Class A common stock at a ratio of 1-for-10. This reverse stock split will take effect on June 10, 2024, at 5:00 p.m. Eastern Time, after the close of trading on the New York Stock Exchange (“NYSE”). When the markets open on June 11, 2024, The company’s Class A common stock will start trading on a split-adjusted basis under the existing trading symbol “DM.” when the markets open on June 11, 2024.

This decision makes Desktop Metal the first of several ailing pure-player 3D printing companies to implement the reverse stock split but very likely not the last. The stocks of Velo3D and Markforged, two companies that also went public via a SPAC merger, are reaching levels where they will need to implement the reverse stock split to continue being listed. AM service providers that went public in recent years, such as Xometry, Shapeways and Fathom are also struggling (some more and some less). While these companies are mostly new entries in the market and the unpredictability of their stock performance might have been taken into account by investors, the crashing stock value of the leading AM marker players, Stratasys and 3D Systems, may be more worrisome, especially as both companies appear unable to counter this trend (Desktop Metal also acquired two established companies, ExOne – which was already a struggling public company at the time of the acquisition – and EnvisionTEC).

The main purpose of the reverse stock split is to increase the per-share market price of the company’s Class A common stock in order to meet the minimum per-share bid price requirement for continued listing on the NYSE. Desktop Metal’s stockholders approved the reverse stock split at the company’s annual meeting held on June 7, 2024. On the same day the company’s Board of Directors approved the reverse stock split.

As a result of the reverse stock split, every 10 shares of the company’s Class A common stock that are issued and outstanding will be automatically reclassified into one new share of the company’s Class A common stock. Proportional adjustments will be made to the exercise prices and the number of shares underlying the company’s outstanding equity awards, as applicable. Proportional adjustments will also be made to the number of shares issuable under the company’s equity incentive plans and certain existing agreements. The common stock that is issued as part of the reverse stock split will remain fully paid and non-assessable. The reverse stock split will not impact the number of authorized shares of common stock or the par value of the common stock.

No fractional shares will be issued as a result of the reverse stock split. Stockholders who would have received fractional shares will instead receive a cash payment equal to the fraction multiplied by the closing sales price per share of the common stock (adjusted for the reverse stock split) on the NYSE on June 10, 2024, which is the last trading day immediately preceding the effective time of the reverse stock split.

Continental Stock Transfer & Trust (“Continental”), the company’s transfer agent, is acting as the exchange agent for the reverse stock split. Stockholders holding their shares electronically in book-entry form and stockholders who hold their shares through a bank, broker or other nominee will not need to take any action. The company does not have any outstanding certificated shares. Stockholders owning shares through a bank, broker or other nominee will have their positions adjusted to reflect the Reverse Stock Split and will receive payment for any fractional shares in accordance with their respective bank’s, broker’s, or nominee’s particular processes.

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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 and, as well as VoxelMatters Directory, the largest global directory of companies in the additive manufacturing industry.

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