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      Convertible Senior Notes Offering: Danimer Scientific Inc. (DNMR) Falls Deep Premarket - Stocks Telegraph

      By Gule Rukhsar

      Published on

      December 16, 2021

      12:57 PM UTC

      Convertible Senior Notes Offering: Danimer Scientific Inc. (DNMR) Falls Deep Premarket - Stocks Telegraph

      Danimer Scientific Inc. (DNMR) stock plunged by a further 6.99% at $9.85 premarket, at the last check on Thursday. The stock has been going down since the company announced proposed convertible senior notes offering yesterday.

      In the previous market session, the stock lost 2.75% at its closing value of $10.59 with 2.21 million shares exchanging. Following the news of the offering, the stock has plunged further deep in the premarket, losing $0.74 at the time of writing.

      The next-generation bioplastics company, Danimer Scientific Inc. has 100.34M shares outstanding. Currently, the company has a market capitalization of $1.09 billion.

      DNMR’s Offering

      On December 15, the company announced proposed convertible senior notes offering. According to this, DNMR will offer an aggregate principal amount of $175,000,000 convertible senior notes in a private offering. Further, these convertible senior notes would be due in 2026. In addition, the company will also grant an option to buy additional $26,250,000 aggregate principal amount of notes. Moreover, the settlement period for these additional notes would be 13 days, including the initial issuance date.

      If not redeemed, repurchased, or converted, the maturation date of these notes will be December 15, 2026. Moreover, noteholders can only convert their notes in particular circumstances and specific periods.

      In addition, DNMR also intends to enter into privately negotiated capped call transactions with the affiliates or the initial buyers themselves. Subsequently, the potential dilution of the company’s common stock is expected to reduce.

      Further, the company will use some of the net proceeds of the offering for funding the costs of entering into capped call transactions. The rest of the proceeds will be used for general corporate purposes.

      Recent Developments

      On December 01, DNMR participated in the Citi 2021 Global Basic Materials Conference, which was held virtually.

      Furthermore, the company entered a long-term collaboration with Total Corbion PLA to support sustainable plastic alternatives. The news of this collaboration was disclosed to the public on November 09, 2021.

      DNMR’s Financial Highlights

      On November 15, the company announced its financial results for the third quarter of 2021, which ended on September 30, 2021. DNMR’s revenue grew 4% year-over-year in the third quarter of 2021, to $13.4 million.

      Moreover, in the third quarter of 2021, the company reported a net income of $7.8 million. Consequently, the net income per basic and diluted share was $0.08 in the third quarter of 2021.

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