Why Nano Dimension Stock Fell Sharply on Monday

What happened

Shares of computer hardware company Nano Dimension (NASDAQ: NNDM) nose-dived on Monday. The stock fell as much as 24.6%, but as of 12:05 p.m. EDT today, it had trimmed its loss to about 19%.

The tech stock's decline follows news that the company is raising capital through a direct offering of its shares, which will dilute shareholders' ownership.

A chalkboard sketch showing a stock price falling

Image source: Getty Images.

So what

On Monday, Nano Dimension announced the sale of about 16.7 million of its American depositary shares (ADS) at a price of $3 each. That will help the company raise approximately $50 million before offering expenses.

Proceeds from the capital raise will be used for "working capital and for other general corporate purposes," management said in a press release on Monday morning.

Now what

The direct offering is expected to close on or about Wednesday, the company said. It follows a run-up in the company's stock price over the past three months, making this a much better time to raise capital than when the stock was below $1 earlier this year.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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