Johnson Fistel, LLP Announces Investigation of DMC Global Inc. for Potential Securities Law Violations (BOOM)

Core Viewpoint - Johnson Fistel, LLP is investigating potential violations of federal securities laws by DMC Global Inc. and its executives, focusing on possible misrepresentations or failures to disclose adverse information that may have impacted investor decisions and caused financial losses [1] Financial Guidance Revision - On October 21, 2024, DMC revised its financial guidance for the fiscal quarter ending September 30, 2024, projecting adjusted EBITDA of approximately $5 million, down from the previous forecast of $15 to $18 million [2] - The company also indicated that its third-quarter results would include approximately $5 million in charges related to inventory and bad debts at DynaEnergetics, along with decreased fixed overhead absorption due to lower sales at Arcadia and DynaEnergetics [2] - Additionally, DMC disclosed a non-cash goodwill impairment charge of approximately $142 million related to its acquisition of a controlling interest in Arcadia in December 2021 [2] Stock Market Reaction - Following the financial guidance revision, DMC's stock price fell by $2.36 per share, or 18.3%, closing at $10.57 per share on October 22, 2024, resulting in significant financial losses for investors [3] - After the release of third-quarter financial results on November 4, 2024, DMC's stock continued to decline, dropping over 10% during mid-day trading on November 5, 2024 [4]