In a recent turn of events, Danimer Scientific, Inc. (NYSE:DNMR), a company specializing in biodegradable plastics, has announced the resignation of one of its board members. Cynthia Cohen, a director of the company, has stepped down from her position, effective December 1, 2024.
While this appears to be a routine change in the composition of Danimer Scientific's board, the company's stock has experienced significant volatility, declining over 80% in the past six months. InvestingPro subscribers have access to 15+ additional exclusive insights and detailed analysis about Danimer Scientific's financial health, valuation metrics, and future prospects through comprehensive Pro Research Reports.
In other recent news, Danimer Scientific experienced a series of significant changes. After releasing Q3 2024 results, the company reported a rise in revenue to $6.7 million, primarily driven by a 20-million-pound cutlery contract. Despite meeting analyst expectations, TD Cowen and Piper Sandler downgraded Danimer's stock and significantly lowered their price targets, citing concerns about potential cash generation challenges and heightened risk of debt default.
Additionally, Danimer implemented a 1-for-40 reverse stock split, approved by both stockholders and the Board of Directors, to comply with the New York Stock Exchange's minimum price requirements. The company also saw a leadership transition, with Stephen Croskrey stepping down as CEO and Richard Altice assuming the Interim CEO position.
In terms of legal developments, Danimer successfully defended itself in a class action lawsuit, with the United States Court of Appeals upholding the dismissal. The company also secured a $1.36 million contract from the U.S. Department of Defense for the development of biobased polyols for high-performance coatings.
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