Investment Research report

Danimer Scientific, Inc.

NYSE:
DNMR
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Danimer Scientific, Inc.
When The Tide Goes Out, What Will Wash Ashore?
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Danimer Scientific, Inc.
Update: When The Tide Goes Out, What Will Wash Ashore?
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Danimer Scientific, Inc.
Update 2: When The Tide Goes Out, What Will Wash Ashore?
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Danimer Scientific, Inc.
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Danimer Scientific, Inc.
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Danimer Scientific, Inc.
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Research Overview

INDEX:
S&P 500
Sector:
Materials
Position:
Short
Date:
May 21, 2021

Overview: After conducting a forensic financial and accounting review, Spruce Point believes Danimer Scientific, Inc. (NYSE: DNMR), a biopolymer manufacturer, has production figures, pricing data, and rosy financial projections that simply do not add up. Based on our latest investigation, we forecast up to 65% to 100% long-term downside risk.

The reports highlight several key concerns with the company, including:

  • For a business promoted as an “ESG” play, we find several corporate governance red flags at Danimer
  • Danimer has several ties to the University of Georgia and is a financial backer of the lab and professors who authored the paper Danimer uses to support its questionable biodegradability claims
  • We believe that Danimer is peddling an inconsistent, ever-changing story to investors and will likely fail to deliver on its promises
  • FOIA records show that Danimer’s monthly PHA biopolymer production and natural gas usage for its Kentucky facility have been materially misreported, in some months by 100%
  • We estimate that PHA average selling prices (ASPS) are overstated by 30% – 42%
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