Danimer Scientific Shares Collapsed (FREE)

I looked at the Danimer Scientific shares over a period of 30 days and here’s what I saw:

7 April 2021 – 37 $
6 May 2021 – 17.66 $

It’s a drop of more than 50 %

I had a second look and noticed that on 6 February 2021, the shares were traded at 64.29 $

Echo Instruments, Technology to Measure & Analyse Plastic Biodegradation (FREE)

Today, they’re at 17.66 $. It’s is a loss of more than 72 %

How did it start?

Danimer Scientific Goes Public

An announcement was made in October 2020 that Danimer Scientific was going public through a publicly-traded special purpose acquisition company called “Live Oak”.

Danimer Scientific to Begin Trading on NYSE

Danimer Scientific stocks started being traded under the ticker symbol “DNMR” on the New York Stock Exchange on December 30, 2020.

Danimer Scientific Investigated for Fraud

On March 20, 2021, the Wall Street Journal published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean? Not Quite, Scientists Say.”

The WSJ article provided that although “Nodax breaks down far more quickly than fossil-fuel plastics . . . many claims about Nodax are exaggerated and misleading, according to several experts on biodegradable plastics.”

According to the article, Jason Locklin, the expert who co-authored the study touted by Danimer as validating its material, stated that Danimer’s marketing is “sensationalized” and that making broad claims about Nodax’s biodegradability “is not accurate” and is “greenwashing.”

Block & Leviton LLP started investigating whether Danimer and certain of its executives may be liable for securities fraud.

Danimer Replies to Fraud Accusations

Danimer Scientific obtained a reply letter from Dr Jason Locklin adressed to the Wall Street Journal ….

The letter starts as follow …

Good evening. I would be most appreciative if you and your colleagues at the Journal would consider publishing this letter in an upcoming edition.…

Danimer Scientific Red Flagged by Investment Research Report (FREE)

Then came the first version of the Spruce Point’s report. A whole series of accusations suggesting that securities fraud may have been involved.

Danimer Scientific Shares Grossly Overvaluated (FREE)

More accusations were made in a second Spruce Point report (update).

More Securities Fraud Investigation at Danimer Scientific (FREE)

A whole series of legal firms jumped on the bandwagon and investigating securities fraud.

Danimer scientific Reply

I received the following statement from Danimer Scientific on 29 April 2021.

“The report about Danimer Scientific recently published by Spruce Point Capital is inaccurate and deliberately misleading. We stand firmly by our public disclosures and will respond to relevant topics as appropriate. Danimer Scientific remains committed to developing renewable and biodegradable replacements for traditional plastics.”

Old Demons

Danimer Scientific’s achilles heel has always been “communications” and “marketing”.

There was a time where Danimer Scientific’s marketing strategy was to present the company at local Rotary meetings.

However, improvements were made and they became much better at marketing and communications. It looked as if the problem was solved.

But now it’s all back to the past.

Excuse my French. but looking at the reply letter ...Good evening. I would be most appreciative if you and your colleagues at the Journal would consider publishing this letter in an upcoming edition.….

I mean come’on. Don’t be greedy. Buy a whole page in the Wall Street Journal if you have to but don’t rely on the goodwill of the editors. Get your wallet on the table and buy a page! Jesus Christ! Amateurs!

Anyway, in the meantime Danimer has gone into radio silence and its’ not good!