Danimer Scientific Announces Steve Croskrey Retirement and Related Changes to the Company’s Board of Directors

Rhea-AI Summary

Danimer Scientific (NYSE: DNMR) has announced the retirement of CEO Stephen E. Croskrey by the end of the year. Croskrey, who has led the company for nine years, will also step down as Chairman of the Board on May 20, 2024, but will remain on the Board and be a nominee for reelection. Richard J. Hendrix will take over as Chairman and serve as Interim Executive Chairman during the transition. The Board has formed an Executive Committee to oversee the search for a new CEO and manage strategy and shareholder engagement. Under Croskrey's leadership, Danimer expanded its production capabilities and secured significant partnerships, including supplying biodegradable materials to Starbucks and Wincup.

Positive

• Stephen E. Croskrey successfully led Danimer for nine years, overseeing its public listing and production expansion.
• Under Croskrey's leadership, Danimer's plant in Winchester, KY, now produces over 32.5 million pounds of PHA.
• Danimer secured significant partnerships, supplying biodegradable materials to brands like Starbucks and Wincup.
• The company recently began supplying compostable plastic cutlery and coffee pods to major brands.

Negative

• The retirement of Stephen E. Croskrey introduces a period of uncertainty and transition for Danimer.
• The need to identify and appoint a new CEO could delay strategic decisions and impact investor confidence.

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, announced today that Stephen E. Croskrey has informed the Board of Directors that he will retire as Chief Executive Officer not later than the end of this calendar year. Mr. Croskrey’s employment contract expires at the end of 2024 following nine years leading Danimer’s mission to commercialize its innovative biodegradable plastic resin, Nodax® PHA. Mr. Croskrey has led Danimer through the process of becoming a public company by merging with Live Oak Acquisition Corp in 2020. During Mr. Croskrey’s tenure, Danimer has acquired and expanded its Winchester, KY plant, which is now capable of producing over 32.5 million pounds of neat PHA or about 65 million pounds of finished product. Danimer currently supplies the resin for biodegradable and compostable drinking straws used by leading brands including Starbucks as well as the broadly distributed Phade brand of straws made by Wincup. Recently, the Company has also begun supplying resin for use in compostable plastic cutlery for a leading quick serve restaurant chain and for coffee pods sold in Europe.

In connection with his retirement announcement, Mr. Croskrey has resigned from his position as Chairman of the Board, effective May 20, 2024, though he will continue to serve on the Board through his current term and will be a nominee for reelection at this year’s annual meeting of stockholders. The Board has appointed Richard J. Hendrix as Chairman, serving in that role upon Mr. Croskrey’s resignation as Chairman. Mr. Hendrix also will serve as Interim Executive Chairman during the period of transition to identify a CEO to succeed Mr. Croskrey. Additionally, the Board has formed an Executive Committee comprised of Mr. Hendrix, John Amboian, David Moody, and Mr. Croskrey. The Executive Committee will be charged with leading the search process for a new CEO, along with oversight of strategy and shareholder engagement during the transition period. More detail regarding Mr. Croskrey’s retirement can be found in the 8-K filed by the Company today.

Mr. Hendrix commented, “We thank Steve for his tireless efforts over the past several years to lead the development of Danimer’s transformative technology and to build a strong pipeline of opportunities to commercialize and scale Nodax®. Taking our business to the next level will require a strong leader who can build enduring relationships with our customers and shareholders. We’re excited about our prospects for identifying a world-class CEO who can build on the progress made during Steve’s tenure.”

Mr. Croskrey added, “I’m grateful for the opportunity to have led Danimer to a leadership position in biodegradable polymers and to the verge of a substantial scaling process and a path to positive earnings and cash flow. I thank the entire Danimer team for your great work and dedication. I love your commitment to our mission, and I know that you will continue to do great things. I look forward to supporting a new CEO and seeing our customers, our employees, our shareholders, and our communities in Winchester, KY and Bainbridge, GA rewarded for their belief in our amazing PHA technology.”

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 in this press release we 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 include, without limitation, statements regarding our expectations for the full year 2024 capital expenditures, Adjusted EBITDA and liquidity, and statements regarding the outcome of stockholder votes on proposals at the Company’s annual meeting of stockholders. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution 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, the overall level of consumer demand on our products; 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 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. We assume 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/20240520668322/en/

Investors

Blake Chamblee

Phone: 770-337-6570

ir@danimer.com

Media

Richard Ivey

Phone: 229-254-7688

rivey@danimer.com

Source: Danimer Scientific, Inc.

FAQ

When is Stephen E. Croskrey retiring from Danimer Scientific?

Stephen E. Croskrey will retire by the end of this calendar year.

What changes are happening in Danimer Scientific's Board of Directors?

Richard J. Hendrix will replace Stephen E. Croskrey as Chairman and serve as Interim Executive Chairman during the CEO transition.

What are Danimer Scientific's recent business achievements?

The company expanded its production capabilities and secured partnerships with brands like Starbucks and Wincup for supplying biodegradable materials.

What is the production capacity of Danimer Scientific's plant in Winchester, KY?

The Winchester plant can produce over 32.5 million pounds of neat PHA or about 65 million pounds of finished product.

What products does Danimer Scientific supply to Starbucks?

Danimer supplies the resin for biodegradable and compostable drinking straws used by Starbucks.