Desktop Metal, a Burlington-based 3-D printing company that was once regarded as a pioneer in its field, has declared bankruptcy and is planning to auction off its assets shortly. This decision came after Nano Dimension, an Israeli 3-D printing company that acquired Desktop Metal for $183 million in April, decided to stop funding its subsidiary. Nano Dimension’s CEO, Ofir Baharav, stated that they are focusing on maintaining their financial strength.<\/p>\n
Desktop Metal is in a precarious financial position, with debts exceeding $138 million. Recently, the company missed an interest payment on its convertible notes issued in 2022. Additionally, it owes $29 million to lawyers associated with the completion of the deal with Nano Dimension.<\/p>\n
In a critical move, Desktop Metal has agreed to sell its subsidiaries in Germany, Italy, and Japan to Anzu Partners for $10 million. This funding is essential for paying bankruptcy lawyers and facilitating the upcoming auction. If the court does not approve this transaction, the company will begin liquidation.<\/p>\n
Desktop Metal has faced numerous challenges since its founding in 2015, aiming to revolutionize manufacturing through 3-D printing technology derived from MIT developments. Despite its promising start, the company’s fortunes turned downward after going public via a merger with a blank check company in December 2020. This move initially helped expand its 3-D printing capabilities, allowing acquisitions of smaller competitors. However, continuous financial losses and escalating interest rates caused a severe drop in stock prices, plummeting over 90% in the past year.<\/p>\n
Attempts to merge with larger peer Stratasys were also unsuccessful. Even after an eventual acquisition by Nano Dimension last July, internal struggles among stakeholders led to a halt in financial support, resulting in Desktop Metal\u2019s current state.<\/p>\n
Ric Fulop, founder and former CEO of Desktop Metal, initially garnered considerable investment, drawing hopes from stakeholders that 3-D printing would transform the marketplace. Ultimately, however, the company has reported no profits, with an expert noting it is essentially a research and development entity that has struggled to achieve positive cash flow.<\/p>\n","protected":false},"excerpt":{"rendered":"
Desktop Metal, a Burlington-based 3-D printing company that was once regarded as a pioneer in its field, has declared bankruptcy and is planning to auction off its assets shortly. This decision came after Nano Dimension, an Israeli 3-D printing company that acquired Desktop Metal for $183 million in April, decided to stop funding its subsidiary. […]<\/p>\n","protected":false},"author":0,"featured_media":941,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\n