What Happened to Danimer Scientific?
Ticker: DNMRSPAC Year: 2020Merger: 2020
Return
-99.2%
Current Price
$0.5
Peak Price
$64.8
Trust Size
$380M
Summary
Bioplastics company that claimed biodegradable PHA would replace petroleum plastics. Hindenburg short report alleged fraud. SEC charged executives with misleading investors.
What Happened
Danimer merged with Live Oak Acquisition Corp in December 2020. The company claimed its Nodax PHA bioplastic could decompose in oceans and landfills, replacing petroleum-based plastics. Pepsi, Nestle, and others signed deals. Stock hit $65. Then Hindenburg Research published a devastating report alleging that Danimers claims about biodegradability were false. The Wall Street Journal confirmed the allegations. SEC charged the CEO and CFO with fraud in 2023. Stock crashed 99% to $0.50.
Key People
Timeline
2020-10
SPAC merger announced
2020-12
Merger completed
2021-02
Stock peaks at $64.80
2021-05
Hindenburg short report alleges fraud
2023-08
SEC charges CEO and CFO with fraud