Desktop Metal Remains Focused on Path to Profitability After Preliminary Tally Shows Stratasys Shareholders Did Not Approve the Merger Agreement
28 September 2023 - 3:53PM
Business Wire
- While Desktop Metal stockholders voted to approve the merger
agreement, Stratasys announced its stockholders – faced with two
alternative acquisition offers for its company – did not likely
vote in favor of the merger agreement proposals
- Merger agreement with Stratasys has been terminated, with DM to
be compensated agreed-upon fees
- Desktop Metal remains focused on continued improvements in
non-GAAP gross margins, operating expenses, adjusted EBITDA, and
operating cash flow – en route to our stated goal of adjusted Q4
EBITDA profitability
Desktop Metal, Inc. (NYSE: DM), a global leader in Additive
Manufacturing (AM) 2.0 technologies for mass production of metal,
polymer, ceramic, and health products, today announced that its
stockholders approved the merger agreement with Stratasys Ltd.
(Nasdaq: SSYS), a leader in polymer 3D printing solutions.
However, at a special meeting of Stratasys stockholders on Sept.
28, Stratasys announced that a preliminary tally indicated that it
did not obtain stockholder approval for the proposals related to
the merger agreement. Consequently, the previously announced merger
agreement has been terminated and DM is to be compensated
agreed-upon fees.
“We’re grateful for our shareholders’ support. While the team at
Desktop Metal believed in the merits of our combination, and is
disappointed in the outcome of the merger agreement, we are
completely confident in the trajectory of our business, which
continues to lower operating costs while growing revenue,” said Ric
Fulop, Founder and CEO of Desktop Metal. “Our plan to reduce costs
and generate revenue remains on track as customers continue
transitioning to our AM 2.0 technologies for mass production of
metal, polymer, ceramic and health products.”
Desktop Metal entered the second half with cash of $127.6
million, and has demonstrated improvements to operating cash
management over multiple quarters.
About Desktop Metal
Desktop Metal (NYSE:DM) is driving Additive Manufacturing 2.0, a
new era of on-demand, digital mass production of industrial,
medical, and consumer products. Our innovative 3D printers,
materials, and software deliver the speed, cost, and part quality
required for this transformation. We’re the original inventors and
world leaders of the 3D printing methods we believe will empower
this shift, binder jetting and digital light processing. Today, our
systems print metal, polymer, sand and other ceramics, as well as
foam and recycled wood. Manufacturers use our technology worldwide
to save time and money, reduce waste, increase flexibility, and
produce designs that solve the world’s toughest problems and enable
once-impossible innovations. Learn more about Desktop Metal and our
#TeamDM brands at www.desktopmetal.com.
Forward-looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements about Desktop Metal’s strategic integration and cost
savings initiatives, expected restructuring charges, anticipated
cost savings, long-term growth, market share, liquidity and
profitability, are forward-looking statements. Forward-looking
statements generally are identified by the words “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this document, including but not
limited to, the risks and uncertainties set forth in Desktop Metal,
Inc.'s filings with the U.S. Securities and Exchange Commission.
There is no guarantee Desktop Metal will achieve the cost savings
it expects. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Desktop Metal, Inc. assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230928058926/en/
Media Relations: Sarah Webster
sarahwebster@desktopmetal.com (313) 715-6988
Investor Relations: Jay Gentzkow
jaygentzkow@desktopmetal.com (781) 730-2110
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