The information in this preliminary prospectus is not complete and may be changed. The Common Stock underlying the Warrants may not be issued, and the Selling Securityholders may not sell these securities, until the registration statement filed with the U.S. Securities and Exchange Commission becomes effective. This preliminary prospectus is not an offer to sell these securities and does not constitute the solicitation of an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED MAY 22, 2023
PRELIMINARY PROSPECTUS
52,423,250 SHARES OF CLASS A COMMON STOCK
9,900,000 WARRANTS TO PURCHASE SHARES OF CLASS A COMMON STOCK
18,525,000 SHARES OF CLASS A COMMON STOCK UNDERLYING WARRANTS TO PURCHASE CLASS A COMMON STOCK AND
90,570,234 SHARES OF CLASS A COMMON STOCK UNDERLYING CLASS B COMMON STOCK
FATHOM DIGITAL MANUFACTURING CORPORATION
This prospectus relates to the resale from time to time by the Selling Securityholders named in this prospectus or their permitted transferees (collectively, the “Selling Securityholders”) of: (i) up to 36,661,014 shares of Class A common stock, par value $0.0001 per share (the “Class A common stock”), issued to certain of the Legacy Fathom Owners in connection with the closing of the Business Combination (as defined herein), (ii) up to 4,770,000 shares of Class A common stock held by Altimar Sponsor II, LLC (the “Sponsor”) and the other Altimar II Founders following the closing of the Business Combination, (iii) up to 2,724,736 Earnout Shares issued to certain Legacy Fathom Owners and (iv) up to 1,267,500 Sponsor Earnout Shares. This prospectus also covers the (a) the resale of up to 9,900,000 Private Placement Warrants to purchase shares of Class A common stock held by the Sponsor, (b) the resale of up to 9,900,000 shares of Class A common stock issuable upon the exercise of the Private Placement Warrants by the Sponsor, (c) the issuance by us of up to 18,525,000 shares of Class A common stock upon the exercise of outstanding Public Warrants and Private Placement Warrants to purchase shares of Class A common stock and (d) the resale by certain of the Legacy Fathom Owners of up to 90,570,234 shares of Class A common stock issuable upon the exchange of New Fathom Units (together with a corresponding number of shares of Class B common stock) held by such Legacy Fathom Owners (including 6,275,264 Earnout Shares presently represented in the form of unvested New Fathom Units). Capitalized terms used but not otherwise defined herein have the meanings given to such terms in the section of this prospectus entitled “Selected Definitions.”
This prospectus also relates to the offer and resale from time to time by certain of the Selling Securityholders named in this prospectus of up to 7,000,000 shares (the “PIPE Shares”) of the Class A common stock which were issued to them in private placements immediately prior to the consummation of the Business Combination.
The Sponsor originally purchased 8,625,000 of our Class B ordinary shares for and aggregate price of $25,000, or approximately $0.003 per share (the “Founder Shares”). On January 28, 2021, our sponsor transferred 25,000 of the Founder Shares to each of our then director nominees, resulting in the Sponsor holding 8,450,000 Founder Shares. On November 16, 2021, the Sponsor and our then directors forfeited and aggregate of 2,587,500 of the Founder Shares, resulting in them holding an aggregate of 6,037,500 Founder Shares. The Founder Shares automatically converted into shares of our Class A common stock at the time of the Closing of the Business Combination, with 1,267,500 of such shares comprising the Sponsor Earnout Shares. In addition, the Sponsor originally purchased the Private Placement Warrants in a private offering at the time of the Altimar II IPO for an aggregate purchase price of $9,900,000, or $1.00 per Private Placement Warrant. The PIPE Shares were purchased by the applicable Selling Securityholders at a price of $10.00 per share. The purchase price of the 36,661,104 shares of Class A common stock issued to certain of the Legacy Fathom Owners and of the 90,570,234 New Fathom Units (which are exchangeable on a one-for-one basis for shares of our Class A common stock) issued to certain other of the Legacy Fathom Owners is unknown. Investors in the Altimar II IPO paid $10.00 per unit, with units consisting of one Altimar II Class A ordinary share and one-fourth of a Public Warrant to purchase an Altimar II Class A ordinary share. The Public Warrants and the Private Placement Warrants automatically converted into the right to purchase shares of our Class A common stock at the time of the closing of the Business Combination. The Selling Securityholders may offer, sell or distribute all or a portion of the shares of Class A common stock and Private Placement Warrants registered for resale hereby publicly or through private transactions at prevailing market prices or at negotiated prices.
We provide more information about how the Selling Securityholders may sell their securities in the section of this prospectus entitled “Plan of Distribution.”
We will receive the proceeds from any exercise of Warrants for cash, but not from the resale of the shares of Class A common stock or Private Placement Warrants by the Selling Securityholders. We could receive up to an aggregate of approximately $213.0 million from the exercise of the Warrants (and the related issuance by us of shares of Class A common stock underlying the Warrants), assuming the exercise in full of all 18,525,000 Warrants for cash. We expect to use the net proceeds from the exercise of the Warrants, if any, for general corporate purposes. We will have broad discretion over the use of proceeds from the exercise of the Warrants. There is no assurance that the holders of the Warrants will elect to exercise any or all of such Warrants. To the extent that the Warrants are exercised on a “cashless basis,” the amount of cash we would receive from the exercise of the Warrants will decrease. The exercise price of the Warrants is $11.50 per share. The likelihood that the Selling Securityholders will exercise their Warrants, and therefore the amount of cash proceeds that we could receive, is dependent upon the market price of our Class A common stock. On May 19, 2023, the closing price of our Class A common stock was $0.5191 per share. If the market price of our Class A common stock continues to be less than the exercise price, it is unlikely that holders will exercise the Warrants, and therefore unlikely that we will receive any proceeds from the exercise of these warrants in the near future, or at all.
As discussed under “Risk Factors,” significant sales of shares of Class A common stock pursuant to the registration statement of which this prospectus forms a part may have a negative pressure on the public trading price of our Class A common stock.
We will pay certain offering fees and expenses in connection with the registration for resale of the Class A common stock and Private Placement Warrants covered by this prospectus. The Selling Securityholders will bear all commissions and discounts, if any, attributable to their respective sales of the Class A common stock and Private Placement Warrants.
You should read this prospectus and any prospectus supplement or amendment carefully before you invest in our Class A common stock or Warrants.
Our Class A common stock is currently listed on the New York Stock Exchange (the “NYSE”) and trades under the symbol “FATH.” Our Public Warrants are currently listed on the NYSE and trade under the symbol “FATH.WS.” On May 19, 2023, the closing sale price of our common stock was $0.5191 per share and the closing price of our Public Warrants was $0.0415 per Public Warrant.
We are an “emerging growth company” and a “smaller reporting company” as those terms are defined under applicable federal securities laws, and as such, are subject to certain reduced public company reporting requirements.
INVESTING IN OUR SECURITIES INVOLVES RISKS THAT ARE REFERRED TO IN THE “RISK FACTORS” SECTION APPEARING ON PAGE 9 OF THIS PROSPECTUS.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities to be issued or resold under this prospectus or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is May , 2023.