Danimer Scientific Implements Measures to Enhance Capital Structure
Danimer Scientific, a pioneering leader in the bioplastics industry, has announced the issuance of a super senior secured promissory note (the “Secured Loan”) with a total principal amount of $11.25 million. This financing deal, facilitated through existing and additional lenders, marks a significant step in enhancing the company’s financial position, bolstering its liquidity, and ensuring the continued development and production of its groundbreaking sustainable, biodegradable materials. With the Secured Loan, Danimer Scientific aims to further its commitment to creating environmentally friendly alternatives to traditional plastics.
Details of the Financing Agreement
The Secured Loan, with a two-year maturity period, carries an interest rate of 15.0% per annum, payable in kind. After accounting for fees and associated expenses, the loan provides essential resources that will empower Danimer to execute its ambitious growth strategies. This capital infusion is a crucial part of the company’s ongoing efforts to scale its operations, enhance production capabilities, and accelerate the commercialization of its innovative bioplastic products, which are central to addressing global plastic waste issues.
Commitment to Sustainable Bioplastics Innovations
The funds from the Secured Loan will primarily be used to support the production of Danimer Scientific’s cutting-edge polyhydroxyalkanoate (PHA) and polylactic acid (PLA) products. These materials are essential components in the creation of biodegradable plastics that serve as eco-friendly alternatives to traditional petroleum-based plastics. As the demand for sustainable solutions continues to grow, Danimer is at the forefront of developing and scaling these bio-based materials that can naturally decompose, offering a long-term solution to plastic pollution.
Richard N. Altice, Interim Chief Executive Officer of Danimer Scientific, expressed the company’s dedication to innovation and sustainable production: “Our world-class science and cutting-edge innovations in bioplastics have positioned us at the forefront of creating sustainable and biodegradable plastic alternatives. We remain committed to providing the world with materials that not only serve industrial needs but also help preserve the planet for future generations.
Strengthening Production Capabilities and Industry Collaboration
With the additional funding secured, Danimer Scientific is in a stronger position to ramp up production, expand its manufacturing capacities, and continue collaborating with its network of lenders, stakeholders, and customers. Altice emphasized the importance of partnerships in achieving the company’s mission of tackling the global issue of non-degradable plastic waste. “We look forward to working with our lenders and other stakeholders to ramp up production and continue advancing our mission to combat non-degradable plastic waste,” Altice said.
Danimer’s innovative approach involves close collaboration with industry partners to improve the overall sustainability of plastic products. By integrating sustainable materials into the supply chain, the company is driving systemic change within the plastics industry, aligning business success with environmental responsibility.
A Legacy of Innovation in Bioplastics
Danimer Scientific’s reputation as an industry pioneer stems from its decade-long commitment to developing renewable, sustainable biopolymer technologies. The company’s biopolymers, which are biodegradable and compostable, are used in a variety of everyday applications, including fibers, films, injection-molded articles, and coatings. These products are designed to break down naturally and return to the environment without leaving harmful residues, providing an essential solution to the global plastic pollution crisis.
Future Prospects and Strategic Goals
The new financing enables Danimer Scientific to accelerate the production and commercialization of its innovative bioplastic products to meet the increasing demand for sustainable materials. As consumer awareness of plastic pollution rises and the demand for eco-friendly products grows, Danimer is poised to expand its market share and make a lasting impact on the global plastics industry.
About Danimer Scientific
Danimer Scientific is a trailblazer in the field of bioplastics, dedicated to providing sustainable alternatives to traditional plastic products. The company’s biodegradable and compostable materials are designed to reduce the environmental impact of plastic waste, offering a green solution for both industrial and consumer applications. By replacing petroleum-based plastics with renewable bioplastics, Danimer is at the forefront of the movement to combat plastic pollution, working to create a more sustainable, circular economy for the future.
