The 5.95 million share public offering of common stock will increase the company's share count by 5.8%. At the current stock price the offering would yield gross proceeds of $327 million. 3D Systems have the underwriter, Canaccord Genuity, a 30-day option to buy up to an additional 892,500 shares for common stock.
3D Systems plans to use the net proceeds from the offering to finance future acquisitions, for general working capital, and for general corporate purposes.
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TheStreet Ratings team rates 3D SYSTEMS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3D SYSTEMS CORP (DDD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and premium valuation."