Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, December 18, 2020

Article Excerpt

DESKTOP METAL INC., $16.09, symbol DM on New York, is a manufacturer of 3-dimensional “additive manufacturing” printers for engineers, designers, and manufacturers. Founded in 2015, it aims to offer metal 3D printing technology that is 100 times faster—as well as cheaper and more reliable—than current technologies. Desktop began trading on the New York exchange on December 10, 2020. Rather than list through an IPO, the company undertook a reverse merger with Trine Acquisition Corp. Trine is what is known as a blank-check company, formed in part to find another company to combine with or acquire. By agreeing to a reverse merger with Trine Acquisition, Desktop was able to avoid all the complications and costs involved with going public through an IPO. After the merger closed, Trine Acquisition changed its name to Desktop Metal and remained listed on New York under the new ticker symbol DM. The merger provided Desktop with $580 million in cash. It plans to use the funds for expansion, as well as to…