Danimer Scientific Invited into Due Diligence and Term Sheet Negotiation Phase for a Federal Financing Bank Loan and DOE Loan Guarantee
August 08 2023 - 4:01PM
Business Wire
Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the
“Company”), a leading next generation bioplastics company focused
on the development and production of biodegradable materials,
announced today that its subsidiary, Meredian Bioplastics, Inc.
(“Meredian”), has been invited by the U.S. Department of Energy’s
(“DOE’s”) Loan Programs Office (“LPO”) into the due diligence and
term sheet negotiation process (“Due Diligence”) of the DOE’s Title
XVII Loan Guarantee Program.
The LPO’s invitation follows the successful submission and
review of the Company’s Part II Application for Meredian’s proposed
bioplastics manufacturing facility which the Company intends to
build in Bainbridge, Georgia, and is based on LPO’s determination
that the Project is highly qualified and suitable for a loan
guarantee.
Due Diligence encompasses detailed confirmatory review which may
result in term sheet negotiations with the Company. If successful,
a U.S. Department of the Treasury’s Federal Financing Bank (FFB)
loan guaranteed by the DOE would assist funding the Company’s
capacity expansion efforts to bring increased volumes of PHA and
PHA-based resins to the marketplace. Completion of Due Diligence
could ultimately result in a conditional commitment and final FFB
loan guaranteed by the DOE. However, there can be no assurance that
the DOE will issue a conditional commitment or a loan guarantee or
that the Company will be able to secure a guaranteed loan on terms
that are satisfactory to the Company. The foregoing matters are
wholly dependent on the results of the Due Diligence and the LPO’s
determination of whether to proceed.
Stephen E. Croskrey, Chairman and Chief Executive Officer of
Danimer, commented, “We are pleased to have been successful in our
Part II application leading to the DOE’s invitation into the Due
Diligence phase for a loan guarantee. Danimer Scientific has grown
to become recognized as one of the most advanced and innovative
biotechnology companies in the world and is deeply appreciative to
the LPO team for their expression of support for our mission to
reduce plastic waste in the environment. We look forward to
continuing to build our relationship with the LPO team and to
working closely with them throughout the Due Diligence
process.”
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, filaments, films and
injection-molded articles, among others. Danimer holds more than
480 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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230808268698/en/
Investors James Palczynski Phone: 415-876-8429
ir@danimer.com Media Anthony Priwer apriwer@daltonagency.com
Phone: 615-515-4891
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