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Tag: Danimer Scientific Inc.

  • Convertible Senior Notes Offering: Danimer Scientific Inc. (DNMR) Falls Deep Premarket

    Danimer Scientific Inc. (DNMR) stock plunged by a further 6.99% at $9.85 premarket, at the last check on Thursday. The stock has been going down since the company announced proposed convertible senior notes offering yesterday.

    In the previous market session, the stock lost 2.75% at its closing value of $10.59 with 2.21 million shares exchanging. Following the news of the offering, the stock has plunged further deep in the premarket, losing $0.74 at the time of writing.

    The next-generation bioplastics company, Danimer Scientific Inc. has 100.34M shares outstanding. Currently, the company has a market capitalization of $1.09 billion.

    DNMR’s Offering

    On December 15, the company announced proposed convertible senior notes offering. According to this, DNMR will offer an aggregate principal amount of $175,000,000 convertible senior notes in a private offering. Further, these convertible senior notes would be due in 2026. In addition, the company will also grant an option to buy additional $26,250,000 aggregate principal amount of notes. Moreover, the settlement period for these additional notes would be 13 days, including the initial issuance date.

    If not redeemed, repurchased, or converted, the maturation date of these notes will be December 15, 2026. Moreover, noteholders can only convert their notes in particular circumstances and specific periods.

    In addition, DNMR also intends to enter into privately negotiated capped call transactions with the affiliates or the initial buyers themselves. Subsequently, the potential dilution of the company’s common stock is expected to reduce.

    Further, the company will use some of the net proceeds of the offering for funding the costs of entering into capped call transactions. The rest of the proceeds will be used for general corporate purposes.

    Recent Developments

    On December 01, DNMR participated in the Citi 2021 Global Basic Materials Conference, which was held virtually.

    Furthermore, the company entered a long-term collaboration with Total Corbion PLA to support sustainable plastic alternatives. The news of this collaboration was disclosed to the public on November 09, 2021.

    DNMR’s Financial Highlights

    On November 15, the company announced its financial results for the third quarter of 2021, which ended on September 30, 2021. DNMR’s revenue grew 4% year-over-year in the third quarter of 2021, to $13.4 million.

    Moreover, in the third quarter of 2021, the company reported a net income of $7.8 million. Consequently, the net income per basic and diluted share was $0.08 in the third quarter of 2021.

  • Danimer Scientific Inc. (DNMR) stock declines in pre-market trading. Why is it happening?

    Danimer Scientific Inc. (DNMR) stock declined by 4.73% in the last trading close while the DNMR stock continued to decline by 11.56% in pre-market trading as well. The decline in DNMR stock price has been observed after Danimer Scientific announced its full-year 2020 financial results on March 29, 2021, in addition to few other developments in Danimer Scientific which we will discuss below. Danimer is a well-known company for its more eco-friendly and sustainable ways for making plastic products. Its renewable and safe biopolymers have been used to help produce biodegradable and compostable plastic goods that contribute to nature rather than polluting our lands and waters for more than a decade.

    Financial Results

    • The revenue generated by DNMR for the full year 2020 was $47.3 million which shows an increase of 46% compared to the revenue reported in the last year. The increase in revenue is due to the high demand increased PHA production capacity at the Company’s Winchester, Kentucky plant, which was brought online in 2020.
    • Net loss reported for the full year 2020 was $12.6 million including $4.3 million of transaction costs as well as professional fees which is linked with DNMR to become the private company.
    • DNMR has calculated its adjusted EBTIDA1 as $3.2 million which was $1.6 million in the prior year.
    • Adjusted EBITDAR1, which removes rent cost mainly related to DNMR’s Kentucky Facility and Georgia production activities, was $0.4 million, down from $1.5 million the year before.
    • Total debt outstanding of $56.6 million and cash of $377.6 million as of December 31, 2020, representing transaction gross proceeds from the Danimer-Live Oak merger completed in December 2020.
    • Lastly the Gross profit has also increased from $11.1 generated in the previous year to $11.5 million this time.

    Recent Development

    On March 29, 2021, DNMR announced that they are thinking of investing $700 million in extending their Bainbridge manufacturing activities, bringing their workforce in Decatur County to nearly quadruple. Danimer and Mars-Wrigley revealed a collaboration on March 16 to create revolutionary home compostable packaging which means SKITTLES will be the first brand to use the new packaging.

    Another recent news is that The Schall Law Firm which is a national shareholder rights litigation firm has announced that they are going to investigate the claims which are being made by the investors of Danimer Scientific. DNMR is being accused by its investors for violating the securities law. Quite possibly this recent news might have caused the DNMR stock price to decline since the investors are unhappy with them.