Why Shapeways Stock Just Slumped

Shares of recent SPAC IPO and 3D printing design library Shapeways (NYSE: SHPW) are getting sold off by more than 12% Thursday (down 12.2% as of 2:45 p.m. EDT). Curiously, the reason the shares are getting sold is...because Shapeways is selling shares.

In a Securities and Exchange Commission (SEC) filing last night, Shapeways registered some 35.5 million shares for sale, and 4.1 million warrants besides, in connection with its Sept. 29 reverse merger into special-purpose acquisition company (SPAC) Galileo Acquisition and consequent de facto IPO.

Of the 35.5 million shares that may eventually be sold, 13.8 million are described by Shapeways as shares "issuable upon the exercise of our publicly traded warrants"; 3.6 million are shares "issuable upon the exercise of private warrants ... issued to Galileo Founders Holdings, L.P." Another 548,000 shares are "issuable upon the exercise of private warrants issued to EarlyBirdCapital, Inc.," and "sponsor warrants" were issued to Galileo to purchase 500,000 shares.

Source Fool.com