DMC Global Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

DMC Global announced the pricing of an underwritten public offering of 2,500,000 shares of common stock at $45.00 per share, aiming for gross proceeds of approximately $112.5 million. An additional option for underwriters to purchase 375,000 shares exists. The offering is scheduled to close on May 7, 2021, pending customary conditions. Proceeds will be utilized for general corporate purposes, possibly including acquisitions. The shares are offered under an automatic shelf registration statement filed with the SEC.

Positive

• Gross proceeds of approximately $112.5 million expected from the offering.
• Proceeds will be used for general corporate purposes, potentially including acquisitions.

Negative

• The offering may dilute existing shareholders' equity.

BROOMFIELD, Colo., May 04, 2021 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) (“DMC Global”) today announced the pricing of its underwritten public offering of 2,500,000 shares of common stock at a public offering price of $45.00 per share. DMC Global has also granted the underwriters a 30-day option to purchase up to 375,000 additional shares of common stock on the same terms. The gross proceeds to DMC Global from this offering are expected to be approximately $112.5 million, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by DMC Global, and assuming no exercise of the underwriters’ option to purchase additional shares of common stock. The offering is expected to close on or about May 7, 2021, subject to satisfaction of customary closing conditions. All of the shares of common stock in the offering are to be sold by DMC Global.

DMC Global intends to use the net proceeds of the offering for general corporate purposes, which may include acquisitions.

KeyBanc Capital Markets is acting as the sole book-running manager for the offering. Stephens Inc.; Stifel; Tudor, Pickering, Holt & Co.; and Roth Capital Partners are acting as co-managers for the offering.

The shares of common stock are being offered by DMC Global pursuant to an automatic shelf registration statement on Form S-3ASR filed with the Securities and Exchange Commission (the “SEC”) on May 3, 2021. A preliminary prospectus supplement and the accompanying prospectus relating to the common stock being offered were filed with the SEC on May 3, 2021 and are available on the SEC’s website at http://www.sec.gov. Copies of the final prospectus supplement (when available) and the accompanying prospectus may be obtained from KeyBanc Capital Markets Inc., Attention: Equity Syndicate, 127 Public Square, 4th Floor, Cleveland, Ohio 44114, or by telephone at (800) 859-1783.

This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale is unlawful. Offers will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About DMC Global

DMC Global is a diversified holding company.  Today, DMC’s portfolio consists of DynaEnergetics and NobelClad, which collectively address the energy, industrial processing and transportation markets.  Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.”

Cautionary Note Regarding Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of applicable securities laws regarding events or conditions that may occur in the future, including with respect to the closing of the offering and the use of proceeds therefrom, and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, satisfaction of the conditions to closing of the offering, the impact of general business and economic conditions, and other factors described in the public filings made by DMC Global at www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and DMC Global disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management’s beliefs, expectations or opinions that occur in the future.

For further information, please contact

DMC Global Inc.
11800 Ridge Parkway, Suite 300
Broomfield, Colorado 80021
Geoff High, Vice President of Investor Relations
303-604-3924 

FAQ

What is the purpose of DMC Global's stock offering?

DMC Global intends to use the net proceeds from the offering for general corporate purposes, including possible acquisitions.

What are the details of the DMC Global stock offering?

DMC Global is offering 2,500,000 shares at $45.00 each, with a potential additional 375,000 shares available for underwriters.

When will DMC Global's stock offering close?

The offering is expected to close on or about May 7, 2021, subject to customary closing conditions.

How much money will DMC Global raise from the stock offering?

DMC Global expects to raise approximately $112.5 million before deducting underwriting discounts and commissions.

How might the stock offering affect DMC Global's shareholders?

The stock offering may dilute existing shareholders' equity due to the increase in total shares outstanding.