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 (TSX: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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