Danimer Scientific Receives Continued Listing Standard Notice from NYSE

Rhea-AI Summary

Danimer Scientific (NYSE: DNMR), a bioplastics company, has received a notice from the NYSE on May 21, 2024, for non-compliance with the Minimum Price Standard, which requires an average closing price of at least $1.00 per share over 30 consecutive trading days. This notice does not lead to immediate delisting. On May 23, 2024, Danimer notified the NYSE of its plan to meet the Minimum Price Standard within six months. The stock will continue to trade on the NYSE during this period. The company had previously addressed a similar notice in January 2024 and regained compliance by March 28, 2024.

Positive

• The stock will continue to trade on the NYSE during the six-month cure period.
• The company has a plan to address the stock price deficiency.
• Previously, Danimer successfully regained compliance within a similar timeframe earlier this year.

Negative

• Danimer is currently not in compliance with the NYSE’s Minimum Price Standard.
• The average closing share price has been below $1.00 for 30 consecutive trading days.
• Repeated non-compliance notices within a year may raise concerns among investors.

Insights

Financial Analyst

The notice from the NYSE regarding Danimer Scientific's non-compliance with the Minimum Price Standard is a significant event for investors. The company has faced challenges maintaining its stock price above $1.00 over 30 consecutive trading days, indicating potential underlying financial or operational issues. For retail investors, this notice signals potential volatility and uncertainty in the stock’s near-term performance.

Danimer’s plans to remedy the situation within the six-month period provide some assurance, but the repeated notices of non-compliance (previously in January 2024) raise concerns about the company's ability to consistently meet listing standards. If the company fails to achieve and maintain the required stock price, it risks delisting, which can drastically reduce liquidity and investor confidence. This cyclical pattern of non-compliance and remediation efforts also points to potential long-term financial instability.

In light of these factors, investors must weigh the risks associated with possible delisting against any strategic initiatives Danimer may undertake to stabilize and enhance its stock price. Keeping an eye on the company’s upcoming quarterly earnings and any significant changes in its financial health will be crucial.

Market Research Analyst

This news emphasizes the importance of market perception and the broader competitive landscape for Danimer Scientific. As a bioplastics company, Danimer operates in a niche but rapidly evolving industry where market confidence can significantly impact stock performance. The recurring compliance issues suggest that investors may lack confidence in the company’s growth prospects or revenue model.

For retail investors, understanding the competitive dynamics and market demand for biodegradable materials is key. If Danimer’s products are not gaining sufficient market traction, or if competitors are outperforming them, this could explain the depressed stock price. Additionally, external factors such as regulatory changes, shifts in consumer preferences towards sustainable products, or advancements in bioplastics technology could either bolster or hinder Danimer’s recovery efforts.

Investors should monitor industry trends, competitive movements and any strategic partnerships or product innovations from Danimer that could signal a turnaround in market sentiment. Engaging with consumer and industry reports on bioplastics could provide valuable insights into the company’s future trajectory.

The Company’s common stock continues to trade on the NYSE under symbol “DNMR”

BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the “Company”), a leading, next-generation bioplastics company focused on the production of biodegradable materials, announced that it received a notice from the New York Stock Exchange (“NYSE”) on May 21, 2024, that the Company is not currently in compliance with the NYSE’s continued listing standard requiring listed-company stock to maintain an average closing price of not less than $1.00 per share over a period of thirty consecutive trading days (“Minimum Price Standard”). The Notice does not result in the immediate delisting of the Company’s Common Stock from the NYSE.

On May 23, 2024, the Company notified the NYSE that it intends to cure the stock price deficiency and return to compliance with the NYSE’s Minimum Price Standard within the six-month period following receipt of the Notice. The Company’s Common Stock will continue to be listed and trade on the NYSE during this period, subject to its compliance with other NYSE continued listing standards. The receipt of the Notice does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission (“SEC”).

The Company intends to consider all available options to cure its non-compliance with the NYSE’s Minimum Price Standard. The Company can regain compliance with the Minimum Price Standard at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period or on the last day of the cure period, the Company has (i) a closing share price of at least $1.00 and (ii) an average closing share price of at least $1.00 over the 30 trading-day periods ending on the last trading day of that month.

The Company notes that it previously received a notice of non-compliance with the NYSE’s Minimum Price Standard in January 2024 and that such non-compliance was cured on March 28, 2024 as disclosed in the Company’s Form 10-K filed with the SEC on March 29, 2024.

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 Company’s future financial and operational performance, including full year capital expenditures, Adjusted EBITDA and cash balances. 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 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/20240524330040/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

What notice did Danimer Scientific receive from the NYSE on May 21, 2024?

Danimer received a notice for non-compliance with the NYSE's Minimum Price Standard, requiring an average closing price of at least $1.00 per share over 30 consecutive trading days.

Will Danimer Scientific be delisted immediately from the NYSE?

No, the notice does not result in immediate delisting. Danimer has six months to regain compliance.

What steps is Danimer Scientific taking to address the stock price deficiency?

Danimer plans to regain compliance within six months and will continue to trade on the NYSE during this period.

Has Danimer Scientific faced similar compliance issues before?

Yes, Danimer received a similar notice in January 2024 and regained compliance by March 28, 2024.

What is Danimer Scientific's stock symbol?

Danimer Scientific's stock symbol is DNMR.