Desktop Metal says ‘focused on path to profitability,’ Stratasys deal terminated

Desktop Metal (DM) announced that its stockholders approved the merger agreement with Stratasys (SSYS). However, at a special meeting of Stratasys stockholders on Sept. 28, Stratasys announced that a preliminary tally indicated that it did not obtain stockholder approval for the proposals related to the merger agreement. Consequently, the previously announced merger agreement has been terminated and DM is to be compensated agreed-upon fees. “We’re grateful for our shareholders’ support. While the team at Desktop Metal believed in the merits of our combination, and is disappointed in the outcome of the merger agreement, we are completely confident in the trajectory of our business, which continues to lower operating costs while growing revenue. Our plan to reduce costs and generate revenue remains on track as customers continue transitioning to our AM 2.0 technologies for mass production of metal, polymer, ceramic and health products,” said Ric Fulop, Founder and CEO of Desktop Metal. “Desktop Metal entered the second half with cash of $127.6M, and has demonstrated improvements to operating cash management over multiple quarters,” the company added.