August 26, 2020
Additive manufacturing firm Desktop Metal has is becoming a publicly listed company. The company has signed a definitive business combination agreement with Trine Acquisition Corp., an acquisition company led by Leo Hindery, Jr., and HPS Investment Partners, a global credit investment firm. According to a press release, upon closing of the transaction, the combined operating company will be named Desktop Metal, Inc. and will continue to be listed on the New York Stock Exchange and trade under the ticker symbol “DM.”
According to the announcement, the company will use the influx of capital to accelerate product development and “support constructive consolidation in the additive manufacturing industry.”
Trine is a special purpose acquisition corporation (SPAC), otherwise known as a blank-check company. These organizations are created to acquire specific companies and then create a public offering.
“We are at a major inflection point in the adoption of additive manufacturing, and Desktop Metal is leading the way in this transformation,” said Co-founder, Chairman and CEO of Desktop Metal, Ric Fulop. “Our solutions are designed for both massive throughput and ease of use, enabling organizations of all sizes to make parts faster, more cost effectively, and with higher levels of complexity and sustainability than ever before. We are energized to make our debut as a publicly traded company and begin our partnership with Trine, which will provide the resources to accelerate our go-to-market efforts and enhance our relentless efforts in R&D.”
“After evaluating more than 100 companies, we identified Desktop Metal as the most unique and compelling opportunity, a company that we believe is primed to be the leader in a rapidly growing industry thanks to their substantial technology moat, deep customer relationships across diverse endmarkets, and impressive, recurring unit economics. Ric has put together an exceptional team and board of directors with whom we are excited to partner to create the only publicly traded pure-play Additive Manufacturing 2.0 company,” said Leo Hindery, Jr., Chairman and CEO of Trine.
Trine holds $300 million in cash in trust. The merger with Desktop Metal has a $2.5 billion pro forma equity value. Desktop Metal’s existing shareholders will hold approximately 74% of the issued and outstanding shares of common stock following the closing of the business combination.
Cash proceeds in connection with the transaction will be funded through a combination of Trine's cash in trust and a $275 million fully committed common stock PIPE at $10.00 per share, including investments from funds and affiliates of Miller Value Partners, XN, Baron Capital Group, Chamath Palihapitiya, JB Straubel, and HPS Investment Partners.
The transaction is expected to be completed in the fourth quarter of 2020.
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