How to say you don't intend to buy Desktop Metal and Markforged without saying it
The Atomic Layers: S6E28 (00175)
Atomic Layer of the Day:
Finally! After a month of silence, Nano Dimension has issued a statement. The new—though officially interim—CEO of the company, Julien Lederman, released an open letter to the world discussing Nano Dimension's current situation and outlining the steps the company plans to take in the near future.
He also addressed the topic of Desktop Metal and Markforged, which, according to original plans, should have long been part of Nano Dimension by now. However, not only are they still independent, but Desktop Metal has also filed a lawsuit against both Nano Dimension and Markforged, trying to force Nano to finalize the acquisition while telling Markforged to, well, "back off."
Lederman was announced as the new CEO on December 26, 2024, and his appointment came with the immediate dismissal of the then-CEO, Yoav Stern.
I covered the details of this situation extensively here:
For the past month, Lederman has been analyzing the company’s status, assessing its opportunities, risks, and challenges, and developing plans to strengthen Nano Dimension’s long-term position. He emphasized repeatedly that before the company can move forward, it must address its past problems.
And there are plenty of problems to solve...
The company has been struggling with investor distrust for over three years, which has led to negative enterprise value. The market value of the company was lower than its net cash, representing about 50% of its book value. Shareholders expressed frustration over the plummeting stock prices (down more than 80% since 2021, when the company raised $1.5 billion) and the lack of confidence in the management team.
In addition, Nano Dimension has faced:
toxic relations between shareholders and management
negative returns for investors
poor financial communication that failed to clarify how the company planned to address ongoing operational losses
lack of a coherent business strategy, despite an ambitious technological vision.
operating costs that were disproportionately high relative to the company’s size.
Of course, these issues were nicely dressed up in corporate language, but they boil down to frantic acquisitions and reckless attempts to acquire Stratasys in 2023. While not explicitly mentioned, this also includes the entire Desktop Metal and Markforged saga, as well as the battle with Murchinson—a shareholder who ultimately seized control of the company, ousting Yoav Stern.
And now the big question: how does the new CEO and management plan to address these issues?
Lederman’s strategy revolves around three points:
Focusing on shareholder interests and building constructive relationships with them.
Rational capital allocation, measured by return on investment (ROI).
Careful operational cost management, aligned with revenue.
Do you see anything in these points about “finalizing the merger with Desktop Metal and Markforged as quickly as possible”?
Yeah, me neither. So, what did Lederman write about these acquisitions?
"Nano Dimension is engaged in legal and regulatory processes regarding the planned mergers with Desktop Metal and Markforged. The ultimate outcome of these mergers remains uncertain and depends on regulators’ decisions and ongoing legal disputes. The company is acting in accordance with existing agreements and plans to provide updates as the situation develops."
So, nothing new beyond what we already know—the completion of the transactions is delayed. This isn’t necessarily Nano Dimension's fault (though we can’t be sure), but the company doesn’t seem particularly determined to finalize the deals quickly. Certainly not as determined as Desktop Metal appears to be.
One could say Nano Dimension intends to acquire Desktop Metal and Markforged, but the realization of these plans depends on regulatory decisions and the outcome of ongoing legal battles. As such, there’s no guarantee the mergers will be completed.
And so on and so forth...
Julien Lederman could have just stated this outright, but instead, he chose not to. He wrapped everything up in a jungle of words, creating a forest of uncertainty.
Why?
Well, take a guess...
Atomic Layer from the Past:
01-28-2015: Kai Parthy unveiled MOLDLAY Wax 3D printing filament.
News & Gossip:
Atomik AM, a University of Liverpool spin-out, has secured a £125,000 investment from LYVA Labs. Atomik AM, a University of Liverpool spin-out, specializes in advanced additive manufacturing, particularly improving binder jetting processes with innovative techniques and binders.
Arduino has launched the Uno R4 Ek, a microcontroller board made and exclusively available in India. The board, available in Wi-Fi and Minima variants, mirrors the global Uno R4 specs.
Another drama is forging in Chinatown… Creality is promoting "Creality Print" as a self-developed software, but it appears to be just a rebranded version of Orca-Slicer. The company faces backlash for not addressing past concerns about originality in its product offerings. Today I was busy all day finishing the German Edition of the World Tour, but tomorrow I will try to look into it more closely.