BigRep and 150 days of stock market slide
The Atomic Layers: S5E29 (00145)
Atomic Layer of the Day:
At the end of July this year, BigRep—a manufacturer of large-format FFF 3D printers—made its debut on the Frankfurt Stock Exchange. The debut was facilitated through a SPAC merger with SMG Technology Acceleration SE, with an initial share price of €11.20.
In my commentary on the event, I expressed cautious optimism, hoping the company could achieve significant success, while also fearing the potential for failure. Historically, all AM companies that entered public markets through this method—whether in Europe or the U.S.—have struggled.
Some have failed outright (e.g., Fast Radius or the U.S.-based Shapeways), others are on the brink of collapse (like Desktop Metal or Zortrax), and some have even been delisted (e.g., Velo3D). Generally, most Western AM companies listed on the stock market are experiencing difficulties. It's easier to list the few exceptions that are performing well (essentially Materialise and, despite internal conflicts, Nano Dimension).
In late September, I wrote an article on LinkedIn titled “SPAC Merger Means Death,” where I described the typical mechanisms that lead AM companies choosing this path to inevitable failure.
BigRep had a chance to break this trend but instead followed the same trajectory as its predecessors—or even raced down that path as if on an empty highway!
In just 150 days, the stock price dropped by 80%. From a peak of €18 per share, it plunged to as low as €1.20 at one point and is now hovering between €2.50 and €2.90.
The company’s current valuation stands at €36.03 million—a far cry from its standing in early August.
On top of this, there are events BigRep has explicitly prohibited people like me from discussing. At the end of October and again at the end of November, significant developments occurred within the company. These details are available on the Frankfurt Stock Exchange website. You can visit the site and read them, but I am unable to publish or discuss them because BigRep has marked the information with the following restriction:
“This publication may not be published, distributed, or transmitted in the United States, Canada, or Japan.”
Since many of you—subscribers to this newsletter—reside in the United States and Canada (I’m unsure about Japan?), publishing this information could expose me to legal action from BigRep, which I’d prefer to avoid. However, if you’re curious, here’s what you can do:
Search for "BigRep stock price" in your browser.
Visit the stock exchange website.
Read the two latest press releases.
All by yourself.
After reading them, you’ll see that the situation at BigRep is far from ideal. In fact, I’d argue it’s quite troubling. These types of announcements aren’t made when things are going well—they’re directly tied to a falling stock price. I suspect they’re also tied to “falling things” within the company itself.
But let me tell you what’s most concerning. The worst part is that, so far in this article, I haven’t mentioned BigRep’s products—their large-format 3D printers—even once. And you know why? Because they don’t matter. They don’t matter to the company’s current situation.
BigRep continues to do what it’s always done—produce large industrial 3D printers—and they do it well. Yet, after 11 years in the market, the company finds itself in this position, releasing the kinds of press statements currently available on the stock exchange website. Statements that cannot be distributed.
It seems like the downward trajectory is independent of the product offering. Or worse - it has always resulted from it...
Atomic Layer from the Past:
12-29-2021: IKEA introduced FLAMTRÄD – a 3D-printed home decor line.
News & Gossip:
Continuing with the stock market thread, BLT and Farsoon's stock prices are still declining, though not as drastically as last week.
After the holiday turmoil, Nano Dimension's stock price has risen, while Desktop Metal's has dropped. Desktop Metal is currently valued at $80 million (market capitalization), whereas Nano Dimension planned to acquire it for $135–$183 million in cash. It's hard to blame the folks at Murchinson for wanting to back out of this deal…
Good news for Velo3D didn’t resonate well with stock market investors, as its stock price plunged by 30%.