Home Industry Desktop Metal carries out 1:10 reverse stock split

Desktop Metal carries out 1:10 reverse stock split

Desktop Metal, a leading company in the 3D printing sector, has implemented a 1:10 reverse stock split of its Class A ordinary shares. This step was taken following shareholder approval at the Annual General Meeting on June 7 and approval by the Board of Directors.

The reverse stock split became effective after the close of trading on the New York Stock Exchange. Since June 11, Desktop Metal shares have been traded on a split-adjusted basis under the existing ticker symbol “DM”. For every 10 old shares, investors receive one new Class A share. Fractions were paid out.

The share consolidation was Desktop Metal’s response to the continuing decline in its share price. The aim is to raise the share price per share in order to meet the NYSE’s minimum price requirements for continued listing.

Desktop Metal is not the first struggling 3D printing company to resort to this measure. Competitors such as Velo3D and Markforged, which also went public through SPAC mergers, may also be facing share consolidations. Even industry giants such as Stratasys and 3D Systems are struggling with low share prices.

In the course of the reverse stock split, outstanding stock options and participation programs for employees were also adjusted. The total number of Desktop Metal shares and their nominal value remain unchanged. The technical process was handled by the transfer agent Continental.


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