Desktop Metal Remains Focused On Path To Profitability After Preliminary Tally Shows Stratasys Shareholders Did Not Approve The Merger Agreement
Portfolio Pulse from Benzinga Newsdesk
The merger agreement between Desktop Metal, Inc. (NYSE:DM) and Stratasys Ltd. (NASDAQ:SSYS) has been terminated after Stratasys shareholders did not approve the deal. Despite this, Desktop Metal remains focused on its path to profitability, with plans to improve non-GAAP gross margins, operating expenses, adjusted EBITDA, and operating cash flow. The company entered the second half with cash of $127.6 million.
September 28, 2023 | 1:55 pm
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NEGATIVE IMPACT
Stratasys shareholders did not approve the merger agreement with Desktop Metal, leading to its termination. The impact on the company's stock price is uncertain.
The termination of the merger agreement could have a short-term negative impact on Stratasys's stock price, as it indicates a lack of shareholder confidence in the company's strategic decisions.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Despite the termination of the merger agreement with Stratasys, Desktop Metal remains focused on its profitability goals. The company has a strong cash position of $127.6 million.
The termination of the merger agreement could have a short-term negative impact on Desktop Metal's stock price. However, the company's strong cash position and focus on profitability could mitigate this impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100