Why Nano Dimension Stock Crashed on Tuesday

Nano Dimension, however, soon developed acold feet connected the deal, and tried to backmost out.

By December, the substance was already earlier the courts, with Desktop Metal suing Nano Dimension for nonaccomplishment to "use tenable champion efforts to get regulatory support arsenic soon arsenic practicable successful transportation with the merger statement betwixt the parties," and demanding "specific performance" -- essentially, asking the tribunal to bid Nano Dimension to implicit the merger, and manus implicit the cash.

Now it looks similar Desktop Metal volition get its wish, and Nano Dimension banal is down 16.5% done 11 a.m. ET.

Desktop Metal's ailment asked the tribunal to unit Nano Dimension to petition the Committee connected Foreign Investment successful the United States ("CFIUS") to o.k. the merger, and past proceed to adjacent the merger wrong 5 days of receiving specified approval, "all different regulatory conditions hav[ing already] been satisfied nether the Merger Agreement," and CFIUS' support being the lone measurement remaining.

This morning, Desktop Metal announced that the Delaware Court of Chancery has ruled successful its favor, "found that Nano materially breached the Merger Agreement, rejected Nano's counterclaims, and granted Desktop Metal circumstantial performance." Within the adjacent 48 hours, Nano Dimension is instructed to execute a nationalist information statement with CFIUS, and past proceed to adjacent the acquisition of Desktop Metal by March 31 (or widen the merger deadline if that's not possible).

Long communicative short, Nano Dimension has mislaid this round. The institution whitethorn effort to entreaty to the Delaware Supreme Court, past (potentially) to the U.S. Supreme Court. Or Nano Dimension could bash what it agreed to bash 9 months ago, and bargain Desktop Metal.

Investors selling Nano banal today, and buying Desktop Metal banal heavily, look to deliberation that's the astir apt result.

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