Danimer Scientific Invited into Due Diligence and Term Sheet Negotiation Phase for a Federal Financing Bank Loan and DOE Loan Guarantee

Rhea-AI Summary

Danimer Scientific's subsidiary, Meredian Bioplastics, has been invited by the U.S. Department of Energy's Loan Programs Office into the due diligence and term sheet negotiation process for a loan guarantee. This could assist in funding the company's capacity expansion efforts to bring more biodegradable materials to the market.

Positive

• Danimer Scientific's subsidiary, Meredian Bioplastics, has been invited into the due diligence process for a loan guarantee from the U.S. Department of Energy's Loan Programs Office. This could potentially assist in funding the company's capacity expansion efforts to bring increased volumes of PHA and PHA-based resins to the marketplace.

Negative

• None.

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 its subsidiary, Meredian Bioplastics, Inc. (“Meredian”), has been invited by the U.S. Department of Energy’s (“DOE’s”) Loan Programs Office (“LPO”) into the due diligence and term sheet negotiation process (“Due Diligence”) of the DOE’s Title XVII Loan Guarantee Program.

The LPO’s invitation follows the successful submission and review of the Company’s Part II Application for Meredian’s proposed bioplastics manufacturing facility which the Company intends to build in Bainbridge, Georgia, and is based on LPO’s determination that the Project is highly qualified and suitable for a loan guarantee.

Due Diligence encompasses detailed confirmatory review which may result in term sheet negotiations with the Company. If successful, a U.S. Department of the Treasury’s Federal Financing Bank (FFB) loan guaranteed by the DOE would assist funding the Company’s capacity expansion efforts to bring increased volumes of PHA and PHA-based resins to the marketplace. Completion of Due Diligence could ultimately result in a conditional commitment and final FFB loan guaranteed by the DOE. However, there can be no assurance that the DOE will issue a conditional commitment or a loan guarantee or that the Company will be able to secure a guaranteed loan on terms that are satisfactory to the Company. The foregoing matters are wholly dependent on the results of the Due Diligence and the LPO’s determination of whether to proceed.

Stephen E. Croskrey, Chairman and Chief Executive Officer of Danimer, commented, “We are pleased to have been successful in our Part II application leading to the DOE’s invitation into the Due Diligence phase for a loan guarantee. Danimer Scientific has grown to become recognized as one of the most advanced and innovative biotechnology companies in the world and is deeply appreciative to the LPO team for their expression of support for our mission to reduce plastic waste in the environment. We look forward to continuing to build our relationship with the LPO team and to working closely with them throughout the Due Diligence process.”

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 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; disruptions and other impacts to the Company’s business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact on our business, operations and financial results from the ongoing conflict in Ukraine; 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/20230808268698/en/

Investors

James Palczynski

Phone: 415-876-8429

ir@danimer.com



Media

Anthony Priwer

apriwer@daltonagency.com

Phone: 615-515-4891

Source: Danimer Scientific, Inc.

FAQ

What is Danimer Scientific's subsidiary invited for?

Danimer Scientific's subsidiary, Meredian Bioplastics, has been invited into the due diligence and term sheet negotiation process for a loan guarantee from the U.S. Department of Energy's Loan Programs Office.

What could the loan guarantee assist with?

The loan guarantee could assist in funding Danimer Scientific's capacity expansion efforts to bring increased volumes of PHA and PHA-based resins to the marketplace.