Danimer Scientific Receives Continued Listing Standard Notice from NYSE

Rhea-AI Summary

Danimer Scientific, Inc. (NYSE: DNMR) received a notice from the New York Stock Exchange that it is not currently in compliance with the NYSE’s continued listing standard requiring a minimum average closing price of $1.00 per share over a 30-day period. The Company intends to cure the stock price deficiency and return to compliance within a six-month period. The receipt of the Notice does not affect the Company’s business, operations, or reporting requirements with the Securities and Exchange Commission.

Positive

• None.

Negative

• The non-compliance with the NYSE minimum share price standard may lead to potential delisting if not resolved within the six-month cure period.

Market Research Analyst

Receiving a notice of non-compliance from the NYSE is a significant event for a publicly traded company. It signals potential concerns about the company's financial health or investor sentiment. In the case of Danimer Scientific, Inc., the notice reflects a situation where the average stock price has fallen below the $1.00 threshold, which could indicate a lack of investor confidence or underperformance relative to market expectations.

From a market research perspective, it's essential to analyze the broader implications of such a notice. It could lead to increased volatility in the stock's trading patterns as investors react to the possibility of delisting. Moreover, the company's plans to cure the stock price deficiency will be closely monitored. Investors will likely be interested in the strategies that Danimer will employ, such as a reverse stock split, strategic partnerships, or operational improvements, to boost the share price. The success of these strategies could influence future investor confidence and stock performance.

Financial Analyst

As a financial analyst, it is critical to evaluate the financial implications of Danimer's notice from the NYSE. The company's commitment to regain compliance within six months provides a timeline for investors to watch. During this period, the company's financial performance, liquidity and operational efficiency will be scrutinized for signs of improvement or further decline.

Investors should consider the company's recent financial statements and any forward-looking statements to assess the likelihood of a turnaround. A drop below the $1.00 threshold often leads to a negative perception among institutional investors and could impact the company's ability to raise capital. If the company is unable to improve its stock price, the long-term financial health could be at risk, potentially leading to a delisting and the subsequent need to trade on less-regulated markets, which usually results in reduced liquidity and higher volatility.

Legal Expert

From a legal standpoint, Danimer's receipt of the non-compliance notice triggers certain reporting requirements and may necessitate shareholder notifications. It is crucial for the company to adhere strictly to the NYSE regulations and the Securities and Exchange Commission (SEC) reporting standards during this period to avoid further regulatory complications.

The company's statement that the notice does not affect its business operations or SEC reporting requirements is accurate and important for maintaining transparency with shareholders. However, the company must also be mindful of potential shareholder lawsuits or legal actions that can arise if investors feel misled about the company's prospects or if there is a significant decline in share value. Therefore, Danimer's legal team must ensure that all communications and remedial actions are compliant with securities laws and exchange regulations.

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 January 23, 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 (30) consecutive trading days. The Notice does not result in the immediate delisting of the Company’s Common Stock from the NYSE.

On January 26, 2024, the Company notified the NYSE that it intends to cure the stock price deficiency and return to compliance with the NYSE’s minimum share 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.

The Company intends to consider all available options to cure its non-compliance with the NYSE minimum share price standard. The Company can regain compliance with the minimum share price requirement 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.

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, films and injection-molded articles, among others. Danimer holds more than 430 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 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/20240129560821/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.

What notice did Danimer Scientific, Inc. receive from the New York Stock Exchange?

Danimer Scientific, Inc. received a notice of non-compliance with the NYSE’s continued listing standard.

How does Danimer Scientific, Inc. intend to address the stock price deficiency?

The company intends to cure the stock price deficiency and return to compliance within a six-month period.