Danimer Scientific Announces Closing of $15 Million Registered Direct Offering

Rhea-AI Summary

Danimer Scientific, Inc. (DNMR) successfully closed a registered direct offering, raising approximately $15 million through the sale of 15,000,000 shares of common stock at $1.00 per share. The offering included warrants to purchase an additional 15,000,000 shares at an exercise price of $1.33 per share, with Roth Capital Partners as the exclusive placement agent. The net proceeds will be used for working capital and general corporate purposes.

Positive

• Successful closing of a registered direct offering raising $15 million for Danimer Scientific, Inc. (DNMR)
• Sale of 15,000,000 shares of common stock at $1.00 per share with accompanying warrants to purchase additional shares at $1.33 per share
• Roth Capital Partners acted as the exclusive placement agent for the offering
• Net proceeds to be utilized for working capital and general corporate purposes

Negative

• None.

Market Research Analyst

The closing of Danimer Scientific's registered direct offering represents a significant capital infusion for the company, amounting to approximately $15 million. This development is noteworthy for investors as it directly impacts the company's financial position and liquidity. The offering price at $1.00 per share, along with the exercise price of the warrants at $1.33, indicates a strategic pricing decision meant to attract investors while providing potential upside through the warrants.

From a market perspective, the use of proceeds for working capital and general corporate purposes suggests that Danimer Scientific is aiming to strengthen its operational capabilities. This move could be seen as a response to the increasing demand for sustainable materials, positioning the company to capitalize on the growing bioplastics market. The timing and terms of the capital raise may reflect current market conditions and investor appetite for environmentally focused companies.

However, investors should consider the dilutive effect of adding 15 million new shares, plus the potential for an additional 15 million shares if the warrants are exercised. This dilution could impact the stock's value in the short term, although the long-term effects depend on how effectively the company deploys the new capital.

Financial Analyst

Examining the financial implications of Danimer Scientific's registered direct offering, the immediate liquidity boost of $15 million stands out. This capital increase is essential for the company's short-term financial health, allowing it to navigate the competitive bioplastics industry with more agility. The use of a 'shelf' registration statement for this offering indicates a pre-planned capital raising strategy, enabling the company to act quickly when market conditions are favorable.

Investors should note the involvement of Roth Capital Partners as the exclusive placement agent, which may lend credibility to the offering and potentially attract institutional investors. However, the offering's impact on earnings per share (EPS) must be closely monitored, as the issuance of additional shares could lead to earnings dilution.

Long-term, the success of this capital raise will be measured by how effectively Danimer Scientific deploys the funds towards profitable initiatives. If the company can leverage this capital to innovate and capture more market share, the dilution may be offset by future earnings growth.

Sustainability Analyst

Within the context of sustainable business practices, Danimer Scientific's capital raise is a strategic move to solidify its position in the bioplastics industry. The company's focus on biodegradable materials aligns with global trends towards sustainability and reducing plastic waste. This offering could enable further research and development into new bioplastic formulations or scaling up production to meet market demand.

Investors with an interest in environmental, social and governance (ESG) criteria may find this offering appealing, given the company's potential to contribute positively to environmental sustainability. However, the true measure of impact will be how the company utilizes the funds to create long-term value while advancing its sustainability goals. The balance between financial performance and environmental responsibility will be important in evaluating the success of this investment.

BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (the “Company” or “Danimer Scientific”), a leading next generation bioplastics company focused on the development and production of biodegradable materials, today announced the closing of its previously announced registered direct offering for the purchase and sale of 15,000,000 shares of common stock (or common stock equivalent in lieu thereof) at a purchase price of $1.00 per share (or per common stock equivalent in lieu thereof) and accompanying warrants to purchase up to an aggregate of 15,000,000 shares of common stock . The warrants have an exercise price of $1.33 per share, will be exercisable commencing six months from the date of issuance and will expire five and one-half years following the date of issuance.

Roth Capital Partners acted as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering were approximately $15 million before deducting placement agent fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The common stock (or common stock equivalent in lieu thereof) and warrants described above were offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-267074) that was declared effective by the Securities and Exchange Commission (the “SEC”) on September 7, 2022. The offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering were filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the registered direct offering may be obtained, by contacting Roth Capital Partners, LLC 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, by phone at (800) 678-9147 or by accessing the SEC’s website, www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

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 the Company’s estimated preliminary fourth quarter and full-year 2023 results and our expectations for our future and operational performance. 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 our expectations related to the use of proceeds from the equity offering; 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/20240325273881/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 is the ticker symbol for Danimer Scientific, Inc.?

The ticker symbol for Danimer Scientific, Inc. is DNMR.

How much was raised in the registered direct offering?

Approximately $15 million was raised through the sale of 15,000,000 shares of common stock at $1.00 per share.

Who acted as the exclusive placement agent for the offering?

Roth Capital Partners acted as the exclusive placement agent for the offering.

What will the net proceeds from the offering be used for?

The net proceeds will be utilized for working capital and general corporate purposes.