Desktop Metal, Inc. (NYSE: DM) has officially approved a 1-for-10 reverse stock split of its Class A common stock, as announced by the company today. The reverse stock split is set to take effect at 5:00 p.m. Eastern Time on June 10, 2024, following the close of trading on the New York Stock Exchange (NYSE). When the markets reopen on June 11, 2024, the Company’s Class A common stock will commence trading on a split-adjusted basis under the existing trading symbol “DM.” The new CUSIP number for the Class A common stock post-reverse stock split will be 25058X 303.
This move aims to enhance the per-share market price of the Company’s Class A common stock to meet the minimum per-share bid price requirement for continued listing on the NYSE. The reverse stock split garnered approval from the Company’s stockholders during its annual meeting held on June 7, 2024. The Board of Directors subsequently approved the reverse stock split at a ratio of 1-for-10 on the same day.
Under the reverse stock split, every 10 shares of the Company’s Class A common stock currently in circulation will be automatically consolidated into one new share. Corresponding adjustments will be made to exercise prices, the number of shares underlying outstanding equity awards, and the number of shares issuable under the Company’s equity incentive plans and certain existing agreements. Importantly, the common stock issued following the reverse stock split will remain fully paid and non-assessable, and there will be no impact on the number of authorized shares of common stock or their par value.
No fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise be entitled to fractional shares will receive a cash payment instead, calculated based on the closing sales price per share of the common stock on the NYSE on June 10, 2024.
Continental Stock Transfer & Trust (Continental), the Company’s transfer agent, will serve as the exchange agent for the reverse stock split. Shareholders holding their shares electronically in book-entry form or through a bank, broker, or other nominee need not take any action. The Company has no outstanding certificated shares. Shareholders holding shares through a bank, broker, or other nominee will have their positions adjusted accordingly, and payment for any fractional shares will be made in accordance with the respective entity’s processes.
Further details about the reverse stock split are available in the Company’s definitive proxy statement, filed with the Securities and Exchange Commission (SEC) on April 23, 2024. This statement can be accessed free of charge on the SEC’s website (www.sec.gov) or on the Company’s website at desktopmetal.com.
