Nanodimension has been making quite a few moves over the past couple of months. The firm’s stock has traded up quite a bit and rose from $1.08 in April 2020 to around $15 in January 2021. Then it would sharply fall to its current resting point at $7.
That has drawn many people to learn about the company. But what is so unique about the company and why is a momentum investor like Cathy Woods doubling down on the firm?
It would conduct several equity funding rounds over the past year to raise over a billion dollars in financial capital. That is quite a bit of funds that offers a runway for several years. But it is planning on doing more with these funds. It has recently signed to purchase DeepCube, an artificial intelligence company that works with hardware to provide more value.
This is a company that could have passed your radar as this is the year of innovation. There is quite a bit of companies offering exposure to electric vehicles, space, and fintech.
NanoDimension and the DeepCube Acquisition
The Israeli firm noted that it would purchase DeepCube Ltd. for $70 million, over fifty percent of the acquisition was in cash and the remaining was in stock of Nano Dimension. The shares must remain “locked” for up to three years after the finalization of the deal.
But why is the DeepCube acquisition interesting and how does it matter for Nano Dimension? The first point is that it helps Nano Dimension to use a portion of the cash that it raised to add value to the firm. At least, to ideally add value to Nano Dimension.
DeepCube’s technology uses cutting edge algorithm research to refine data analysis and deliver more advanced Deep Learning oriented artificial intelligence. The ML processes should be faster and more precise regarding deep learning model training. Why it matters to Nano Dimension is that it can integrate with hardware like fitting edge devices and real time applications, according to Deepcube.
Nano Dimension is also obtaining the team at DeepCube, which comprises scientists, engineers, and experts in artificial intelligence and machine learning. They also have prior association with the defense industry, homeland security, and other governmental divisions.
DeepCube’s AI/ML/DL solutions demonstrate 10 times speed improvements and memory reduction, making it the only technology which allows efficient deployment of deep learning models on edge devices and for real-time applications, according to the company
“ Nano Dimension’s vision is to establish ‘INDUSTRY 4.0’ solutions, which entail building an AI/ML ‘distributed digital fabrication application’ rather than just building machines as capital equipment. The ‘AI/ML/DL Distributed Electronic Fabrication Application’ will enable a totally environmentally and ecologically friendly digital control of the supply chain for Hi-PEDs (High-Performance-Electronic-Devices), or very high-performance AME-3D-PCBs” noted a representative of Nano Dimension.
At the same time, people are wondering if the Nano Dimension deal with DeepCube was a fluke. After all, two of Nano Dimensions board members are the founders of DeepCube, which presents potential conflicts. Observers may wonder if this acquisition will help the firm to gain more value or if it is a buyout of friend’s firms to legally move cash from the firm to those founders.
NanoDimension Is A Young Firm Shaking Up 3D Printing
Nano Dimension was founded in Israel. The 3D Printing company is compelling because it works with defense providers, has relationships within the industry and continues to innovate to this very day. Its market capitalization is close to $1.5 billion and many think that there’s room for growth. The global market for 3D printing products and services should grow over $40 billion in three years. A small firm like Nano Dimension, then, has the ability to come in with its new technology and capture market share. Nano Dimension is quite unique in that it offers customers with the ability to print using several materials at once. This hybrid solution differs over traditional industry players.
Of course, the market has shown that this is a volatile company but it has executed and continues to do so to this very day. It is said to be close to its inflection point, it has sixty machines out in the marketplace and works with top notch institutions around the world.
This company is exciting because it has a proven track record, has cash for quite a while, and it looks like it will buy one or two more valuable companies that will make it more effective.
Is 3D Printing Really a Big Deal?
Yes, 3D printing is spilling over into many industries today. You can find value in aerospace, defense, consumer goods, electronics and many other critical industries today.
The official term is additive manufacturing and it is quite certainly a big deal as it brings more innovation to electronics fabrication. Nano Dimension finds itself within the multilayer printed circuit boards space among other similar areas.
There’s various ways that Nano Dimension can become a part of the future. It can operate in a standalone fashion and continue to ramp up operations, it can be an acquisition target as it makes progress. The question is, will the company gain enough orders over the next year to generate feasible revenues to foster its operations?