Danimer Scientific, a leading innovator 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. The financing, arranged with existing and additional lenders, is a critical step in providing liquidity and fortifying the company’s financial position as it continues its mission to develop and produce sustainable, biodegradable materials.
The loan, which matures in two years, carries an annual interest rate of 15.0%, payable in kind. After accounting for fees and expenses, the funding provides essential resources to help Danimer execute its growth strategies.
Commitment to Sustainable Innovations
The capital infusion will allow Danimer Scientific to maintain its focus on the production of its innovative polyhydroxyalkanoate (PHA) and polylactic acid (PLA) products. These materials are vital components in creating biodegradable plastics that provide environmentally friendly alternatives to traditional plastic products.
“Our world-class science and cutting-edge innovations in bioplastics have positioned us at the forefront of creating sustainable and biodegradable plastic alternatives,” said Richard N. Altice, Interim Chief Executive Officer of Danimer Scientific.
Altice emphasized that Danimer is on track with a major commercial initiative involving biodegradable cutlery. “We continue to work with our customers to launch the recently reported significant cutlery award that is progressing well. We anticipate reaching the full annual run rate by mid-2025. Consistent with our end customer’s ramp plan, we have already received orders for over 365,000 pounds of cutlery resin and film resin,” he said.
Strengthening Production and Industry Collaboration
The secured loan ensures that Danimer can ramp up its production capabilities while collaborating closely with lenders, stakeholders, and customers. Altice highlighted the company’s commitment to addressing the global problem of non-degradable plastics waste.
“We look forward to working with our lenders and other stakeholders, staying focused on ramping up production, and continuing our mission to combat non-degradable plastics waste,” he added.
A Legacy of Innovation
For over a decade, Danimer Scientific has pioneered renewable and sustainable biopolymer technologies that help create plastic products designed to return to nature rather than pollute the environment. The company’s biopolymers, which are biodegradable and compostable, are used in a variety of everyday applications, including additives, aqueous coatings, fibers, filaments, films, and injection-molded articles.
Danimer’s technology has set a benchmark in the industry, allowing customers to replace traditional petroleum-based plastics with environmentally friendly alternatives. The company holds more than 480 granted patents and pending patent applications across 20 countries, showcasing a robust portfolio of manufacturing processes and biopolymer formulations.
With the latest funding in place, Danimer is poised to scale its operations and meet the growing demand for sustainable plastic alternatives. The company remains committed to delivering value to its stakeholders while promoting a greener, more sustainable future for the planet.
About Danimer Scientific
Danimer Scientific is at the forefront of developing innovative bioplastics designed to combat plastic pollution. Its biodegradable and compostable materials are used in a wide range of consumer and industrial applications. By replacing traditional plastics with sustainable alternatives, Danimer is making significant strides toward reducing the environmental impact of plastic waste.
