|Trine Acquisition Corp.(stock symbol: (TRNE), a SPAC that raised $261 million when it went public in March 2019, has agreed to merge with Desktop Media, a manufacturer of 3D metal printing systems.|
TRNE is trading at $11.60 per share this morning, up $1.46.
Desktop Metal to go public via reverse merger
Dan Primack, author of Pro Rata
August 26, 2020
Desktop Metal, a Burlington, Massachussetts-based maker of 3D metal printing systems, agreed to go public via a reverse merger with Trine Acquisition, a SPAC formed last year by veteran telecom investor Leo Hindery. It would give Desktop Metal an initial market value of around $2.5 billion.
Why it matters: This was the result of a formal, bank-led auction among SPACs, CEO Ric Fulop tells Axios, without Desktop Metal also running a parallel IPO or private equity process. That's unusual, but likely to become more common as SPACs proliferate.
-- Trine will contribute $300 million via the merger, while Desktop Metal also secured $275 million via a $10 per share PIPE from Miller Value Partners, XN, Baron Capital Group, Chamath Palihapitiya, JB Straubel, and HPS Investment Partners.Desktop
-- Metal raised around $450 million in VC funding, most recently in early 2019 at a $1.5 billion valuation. Backers include Lux Capital, Ford, NEA, Kleiner Perkins, Koch Disruptive Technologies, GV, and GE Ventures.
The bottom line: "While the earlier boom in 3D printing focused on consumer printers that could spew out trinkets, today’s focus is industrial uses like automotive and aerospace where designs that could only be produced on such printers create more efficient parts with less weight," per Forbes.
TRNE, which is acquiring Desktop Metal, a manufacturer of 3D printing systems, might merit a close look.
Investor presentation: sec.gov
The transaction includes a $275 million PIPE investment, led by Social Capital's Chamath Palihapitiya. Social Capital was the sponsor of the Virgin Galactic deal. This is very smart money.
Mr. Palihapitiya has written a one page document on what he likes about Desktop Metal.