Desktop Metal (NYSE: DM): Court Ruling Strengthens Acquisition Position

By Patricia Miller

Mar 26, 2025

1 min read

The Delaware Court of Chancery has ordered Nano Dimension to move ahead with its merger with Desktop Metal.

#What You Need to Know

The Delaware Court of Chancery has ruled in favor of Desktop Metal (NYSE: DM), mandating that Nano Dimension proceed with its acquisition. Following a trial that reviewed claims of breach of agreement, the court found that Nano Dimension materially breached its merger obligations. Consequently, Nano must execute a national security agreement with the Committee on Foreign Investment and fulfill its financial commitments. This ruling has significant implications for both companies as they navigate the complexities of this long-awaited merger, impacting shareholder interests and future strategies.

#Why This Is Important for Retail Investors

  • Shares Soared: DM stock surged 98% on the news, reflecting renewed investor confidence that the $5.50 per share buyout will go through.

  • Clear Legal Win: The Delaware court confirmed DM’s claims and rejected Nano’s counterarguments, strengthening DM’s position and credibility.

  • Short-Term Exit Opportunity: Investors now have a clearer path to a near-term cash exit at a premium, which is especially appealing in a volatile small-cap environment.

  • Risk Premium Dissipates: With the deal likely back on track, the uncertainty discount that dragged on DM’s stock has largely disappeared.

#Relevant ETFs

  • ARK Innovation ETF (ARKK)

  • iShares Global Tech ETF (IXN)

  • Invesco QQQ ETF (QQQ)

  • SPDR S&P 500 ETF Trust (SPY)

  • Fidelity MSCI Industrial ETF (FIDU)

  • iShares U.S. Aerospace & Defense ETF (ITA)

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.