BAINBRIDGE, Ga. - Danimer Scientific, Inc. (NYSE: DNMR), a bioplastics producer, has been notified by the New York Stock Exchange (NYSE) of its non-compliance with the exchange's minimum price standard. The company's stock has not maintained the required $1.00 average closing price over a recent 30-day trading period.
The notice, received on May 21, 2024, does not immediately affect the listing of Danimer's common stock, which will continue to trade on the NYSE. The company has expressed its intention to resolve the deficiency within the six-month grace period allowed by the NYSE following the notice.
Danimer's plan to regain compliance includes options to ensure the stock price meets or exceeds the $1.00 minimum closing price requirement. Compliance can be achieved if the company's stock closes at $1.00 or higher on the last trading day of any calendar month during the cure period, and also posts an average closing price of at least $1.00 over the 30-day period ending on that day.
Previously, in January 2024, Danimer received a similar notice of non-compliance from the NYSE, which the company successfully remedied by March 28, 2024, as confirmed in its Form 10-K filed with the SEC.
The current notice from the NYSE does not impact Danimer's business operations or its SEC reporting obligations. The company specializes in the production of biodegradable materials, offering biopolymers for various applications such as coatings, fibers, and injection-molded products. Danimer holds numerous patents and patent applications globally for its manufacturing processes and biopolymer formulations.
This news is based on a press release statement and adheres to the Wall Street Journal's reporting standards.
InvestingPro Insights
Amidst the challenges of maintaining compliance with the NYSE's minimum price standard, Danimer Scientific, Inc. (DNMR) faces additional financial headwinds. The company's market capitalization stands at a modest $78.26 million, reflecting investor caution. A significant factor contributing to this valuation is the company's negative Price/Earnings (P/E) ratio, which, as of the last twelve months leading up to Q1 2024, is at -0.54. This metric suggests that investors are not expecting earnings growth in the near future, aligning with the InvestingPro Tips that analysts do not anticipate the company will be profitable this year.
Moreover, Danimer's Price/Book ratio during the same period is 0.31, indicating that the stock is trading at a low multiple of its book value. While this could be seen as a sign of undervaluation, it is likely also a reflection of the broader concerns about the company's financial health, including its significant debt burden and weak gross profit margins, as highlighted by InvestingPro Tips.
Investors considering Danimer's stock should note that the company's stock price has experienced considerable volatility. The one-year price total return as of mid-May 2024 is -76.97%, underscoring the stock's sharp decline over the past year. This trend is corroborated by the InvestingPro Tips which remark on the stock's significant price fall over various periods, including the last week, three months, and six months.
For those seeking a deeper analysis of Danimer Scientific and access to additional insights, there are 15 InvestingPro Tips available, which can provide a more comprehensive understanding of the company's financial state and stock performance. Interested readers can take advantage of the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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