Danimer Scientific, a forward-thinking biotechnology company specializing in biomaterials production, has announced its plan to execute a reverse stock split of its Class A common stock, following approval from both its Board of Directors and stockholders. The split will occur at a ratio of 1-for-40, a decision made by the Board from within the range of ratios authorized by stockholders.
The reverse stock split is set to take effect after the close of trading on the New York Stock Exchange (NYSE) on November 12, 2024. Shares will begin trading on a split-adjusted basis when markets open on November 13, 2024, under the existing trading symbol “DNMR” and a new CUSIP number (236272 407).
The Company anticipates that the reverse stock split will enhance the share price of its common stock, helping it to comply with the price criteria outlined in Section 802.01C of the NYSE Listed Company Manual, known as the Minimum Share Price Rule.
Upon the reverse stock split’s effectiveness, every 40 shares of the Company’s currently issued and outstanding common stock will convert automatically into one share of common stock. Fractional shares will not be issued; instead, stockholders entitled to fractional shares will receive cash equivalent to the value of those shares. The Company does not expect the total cash paid for fractional shares to be significant. The reverse stock split will apply uniformly to all stockholders and will not change any stockholder’s percentage ownership in the Company’s common stock, aside from adjustments related to fractional shares.
Adjustments will also be made proportionately to the number of shares underlying the Company’s outstanding equity awards, warrants, and shares issuable under equity incentive plans, including adjustments to exercise and conversion prices as needed. The Company’s warrants, which are traded on the OTCQX market under the symbol “DNMRW,” will continue to trade with that symbol and existing CUSIP.
The reverse stock split will not impact the number of authorized shares or the par value of the common stock. Continental Stock Transfer and Trust Company will serve as the exchange agent for the reverse stock split. Registered stockholders holding shares electronically in book-entry form need not take any action. Stockholders with shares held in brokerage accounts will see their positions adjusted automatically according to each broker’s specific processes.
For further details regarding the reverse stock split, refer to Danimer’s definitive proxy statement filed with the SEC on September 23, 2024. This document is available for free at the SEC’s website, www.sec.gov, and on Danimer’s Investor Relations site at https://ir.danimerscientific.com/.
