NYSE Delisting Notification Preceded CEO Transition at Fathom Digital Manufacturing
Hartland’s Fathom Digital Manufacturing Corp. (NYSE: FATH) has appointed Carey Chen as its new CEO, effective immediately. He succeeds Ryan Martin, who served as CEO since 2019 and led the company through numerous acquisitions and its transition in 2022 to become listed on the New York Stock Exchange.
This executive transition follows on the heels of a September 22 notification by the NYSE that it was commencing stock delisting of Fathom. To avoid the delisting, on September 26, Fathom announced a 1-for-20 reverse stock split. The company stated, “the primary goal of the reverse stock split is to increase the per share market price of the Company’s Class A common stock to meet the minimum $1.00 average closing price requirement for continued listing on the NYSE.” Fathom stock is currently trading at $4.34 per share, down 85.44% year to date.
Fathom has faced challenging macroeconomic conditions in 2023 and reported a net loss of $8.6 million for the first half of the year compared to net income of $53.3 million for the same period in 2022. The company will report its third-quarter results on November 14.
Fathom is an industry leader in on-demand digital manufacturing services, serving companies in the technology, defense, aerospace, medical, automotive and IOT sectors. The company currently has 124 employees in Hartland and 600 nationwide.
Incoming CEO Chen has served as a member of the Fathom board of directors and its predecessor companies since 2019. His previous experience includes serving as president of consulting firm Altix Corporation and the chief executive of Cadrex Manufacturing Solutions, Incodema Holdings LLC and Cincinnati Incorporated. He has also served on the board of directors of New Valence Robotics Corporation and Digital Alloys, Inc., which are additive manufacturing startups from MIT specializing in plastic and metal 3D printing systems and service bureau solutions.
“Fathom Digital Manufacturing is moving in a critical strategic direction aimed at fortifying our future in the on-demand digital manufacturing services industry,” said TJ Chung, Chairman of Fathom’s Board of Directors. “Given Carey’s proven track record, his expertise leading complex industrial companies, and his intimate knowledge of Fathom, we are confident his leadership is the ideal fit to drive the Company forward as we work towards achieving our next phase of growth.”
Chen said of his new role, “The on-demand digital manufacturing services space continues to evolve. We have a significant market opportunity to further develop emerging technologies and pioneer new standards in on-demand digital manufacturing with 3D printing services, metal cutting, CNC machining, injection molding, amongst other capabilities to further meet and exceed our customers’ needs. I am energized and excited to work with Fathom’s talented team and help take the Company to even greater heights.”