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Tag: DNMR

  • Danimer Scientific, Inc. (DNMR) gained in the pre-market; here is why?

    Danimer Scientific, Inc. (DNMR) stock gained in the pre-market after the company announced its agreement with Hyundai Oilband in a press release. DNMR values at $4.60, gaining more than 1.7% from the previously closed value. At the end of the last trading session, the stock closed at $4.86. The stock volume traded in the last trading session was around 4.5 million shares.

    Reason for the stock gain

    Danimer Scientific, Inc. (DNMR) announced today that it has agreed with Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings, to collaboratively develop global new markets and applications for polyhydroxyalkanoate (PHA), a biodegradable alternative to traditional plastic.

    This collaboration will first focus on supplying Nodax, Danimer’s flagship PHA, and other PHA-based compounds to business clients in South Korea and other Asian markets for ecological single-use packaging. The firms hope to expand worldwide PHA manufacturing potential.

    According to the company, a global response is required to reduce the environmental impact of plastic trash. Meanwhile, they are excited to join with one of South Korea’s most influential corporate leaders, Hyundai Oilbank, to offer our sustainable materials and encourage the growth of PHA applications across Asia.

    Although the considerable environmental damage caused by the burning and recovery of discarded plastics, plastic consumption keeps rising. By replacing typical plastics with biodegradable polymers, the firm can reduce pollution and is thrilled to engage with Danimer Scientific on this vital and transformative endeavor.

    Reason for the stock gain

    The stock gained in the pre-market due to its significant agreement with Hyundai Oilbank. This strategic partnership could be an excellent opportunity to enhance its business.

    Conclusion

    The bioplastic company is keen to implement its vision of biodegradable products. The company should benefit from the deal to grow itself and achieve its goals.

  • 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.