Danimer Scientific Announces Common Stock Expected to Begin Trading Promptly on OTCQX Marketplace

Rhea-AI Summary

Danimer Scientific (DNMR) announced that the New York Stock Exchange (NYSE) has suspended trading of its common stock and initiated delisting procedures. The action follows the company's failure to maintain the required average global market capitalization of at least $15 million over 30 consecutive trading days, violating NYSE Rule 802.01B.

The company is considering appealing the NYSE's determination and expects its common stock to resume trading on the OTCQX market under the symbol 'DNMR' on December 31, 2024. The company's dividend warrants continue to trade on OTCQX under 'DNMRW'. Danimer emphasizes that the delisting process does not affect its business operations.

Positive

• Business operations remain unaffected by the delisting process
• Trading expected to continue on OTCQX market

Negative

• NYSE suspended trading and initiated delisting procedures
• Failed to maintain required $15M average market capitalization over 30 trading days
• Potential loss of NYSE listing visibility and prestige
• Moving to OTCQX may reduce stock liquidity and institutional investor access

Insights

Financial Market Analyst

The delisting from NYSE represents a critical inflection point for Danimer Scientific, highlighting severe market capitalization deterioration to below $15 million. Moving to OTCQX - while maintaining trading capability - typically results in reduced liquidity, institutional investor access and analyst coverage.

The downgrade to over-the-counter trading introduces several operational challenges: increased cost of capital, harder access to equity markets and potentially stricter loan covenants. For a bioplastics company requiring significant capital for R&D and production scaling, these constraints could materially impact growth trajectory.

In simpler terms: imagine moving from a premium shopping mall to a side-street location - you can still operate, but with less visibility and fewer potential customers. This transition often signals deeper financial challenges beyond just market value decline.

Corporate Governance Expert

The company's decision to potentially appeal the NYSE delisting merits scrutiny. While appeals can buy time, they rarely succeed without substantial market cap improvement. The focus should be on the underlying issue - Danimer's inability to maintain minimum market value requirements, suggesting fundamental business challenges.

The preservation of warrant trading on OTCQX indicates ongoing commitment to capital market presence, but the structural implications of OTC trading include reduced reporting requirements and potentially weakened corporate governance standards. This could affect stakeholder confidence and future capital raising capabilities.

Think of this as a credit score downgrade - while you can still operate, your borrowing terms become less favorable and you'll need to work harder to rebuild trust.

–Dividend warrants continue to trade on OTCQX marketplace under “DNMRW”–

BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the “Company”), a leading next generation bioplastics company focused on the development and production of biodegradable materials, today announced that it received notice the New York Stock Exchange (“NYSE”) suspended trading of its common stock on the NYSE effective immediately and started the process to delist its common stock from the NYSE. The start of the delisting process follows the NYSE’s determination under Rule 802.01B of the NYSE Listed Company Manual that the Company did not meet the continued listing standard that requires listed companies to maintain an average global market capitalization of at least $15 million over a period of 30 consecutive trading days.

The Company is assessing whether to appeal this determination and expects trading of its common stock will resume on the OTCQX market under its ticker symbol “DNMR” on December 31, 2024.

The delisting process does not affect Danimer’s business operations. The Company will remain listed on the NYSE pending a possible appeal and completion of all applicable NYSE procedures.

About Danimer Scientific

Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer’s technology can be found in a vast array of plastic end-products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. Danimer holds more than 480 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit https://danimerscientific.com.

Forward‐Looking Statements

Please note that this press release may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. The Company cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, a determination by the Company regarding an appeal of the NYSE decision to commence delisting proceedings, the outcome of third party entities to transition the Company’s Class A Common Stock to the OTC Market Group platform; whether an over-the-counter trading market for our common stock will develop or persist; our ability to meet any requirements of any stock exchange for listing our securities in the future; the overall level of consumer demand on our products; our ability to maintain sufficient liquidity by realizing near-term revenue growth and related cash returns and preserving cash until such cash returns, if any are obtained; the effect on our borrowing facilities of an event of default, including if an Annual Report on Form 10-K contains a Report of Independent Registered Public Accounting Firm that includes disclosure regarding going concern; our ability to maintain our exchange listing; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company’s exposure to product liability or product warranty claims and other loss contingencies; the outcomes of any litigation matters; the impact on our business, operations and financial results from the ongoing conflicts in Ukraine and the Middle East; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carryforwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241231824632/en/

Investor Relations and Media

Blake Chamblee

Phone: 770-337-6570

ir@danimer.com

Source: Danimer Scientific, Inc.

FAQ

Why is Danimer Scientific (DNMR) being delisted from NYSE?

Danimer Scientific is being delisted because it failed to maintain the NYSE's required average global market capitalization of $15 million over 30 consecutive trading days, violating Rule 802.01B of the NYSE Listed Company Manual.

When will DNMR stock begin trading on OTCQX?

DNMR stock is expected to begin trading on the OTCQX market on December 31, 2024.

Will the NYSE delisting affect Danimer Scientific's business operations?

No, according to the company, the delisting process does not affect Danimer Scientific's business operations.

What happens to DNMR stock while the company considers appealing the NYSE decision?

DNMR stock will remain listed on the NYSE pending a possible appeal and completion of all applicable NYSE procedures.

What is happening with Danimer Scientific's dividend warrants (DNMRW)?

Danimer Scientific's dividend warrants continue to trade on the OTCQX marketplace under the symbol 'DNMRW'.