After a court decision in favor of Desktop Metal, Inc. (NYSE: DM) in its continuing legal struggle, the company’s shares saw a sharp increase. The stock of DM had increased by an astounding 91.85% to $4.36 per share as of the most recent market check.
The Court Gives Desktop Metal the Win
Desktop Metal won its case against Nano Dimension Ltd. and Nano US I, Inc., its U.S. subsidiary, before the Delaware Court of Chancery. The merger agreement signed by the two organizations on July 2, 2024, was at the heart of the conflict.
The Court found that Nano Dimension had significantly broken the agreement in a post-trial ruling released on March 24. Furthermore, the Court dismissed all counterclaims made by Nano and granted DM’s request for specific performance.
Mandates for Merger Completion
The Court’s order requires Nano Dimension to complete and execute a national security agreement with the Committee on Foreign Investment in the United States (CFIUS) within 48 hours of the decision.
The final need for the merger to move forward is this agreement. Additionally, Desktop Metal has the right to extend the agreement’s expiration date until the deal is concluded if the merger has not been completed by March 31, 2025.
Under Rule 54(b) of the Court of Chancery, this decision is immediately appealable to the Delaware Supreme Court as it represents a definitive judgment on the particular performance claims.
Dedication to Quick Merger Finalization
In keeping with its promise to stakeholders, workers, and customers, Desktop Metal has reaffirmed its intention to move quickly to complete the transaction. The business is still committed to carrying out its end of the bargain and will keep trying to find a quick solution.
Implications for Law and Regulation
Desktop Metal’s legal claims included an official declaration that Nano Dimension had not fulfilled its obligation to obtain regulatory clearance by making reasonable efforts. In order to stop Nano from ending the contract or acting against its end of the bargain, DM also sought an injunction.