Danimer Scientific, Inc. has completed the pro-rata dividend distribution of warrants to holders of its Class A Common Stock as of May 13, 2024. Each shareholder received one Dividend Warrant for every three shares held, with fractional shares rounded down. The Dividend Warrants, trading under ‘DNMRW’ on the OTCQX market from July 15, 2024, can be exercised at an initial price of $5.00 per share. Holders have the option to use cash or Convertible Notes to exercise the warrants until July 15, 2025. An additional half share of Common Stock is offered as a Bonus Share Fraction if the warrants are exercised early. The company can redeem the warrants after August 1, 2024, under certain conditions.
Positive aspects of the distribution include the completion of dividend warrants distribution to shareholders, the separate trading of Dividend Warrants under ‘DNMRW’ from July 15, 2024, and the flexibility to exercise warrants using cash or Convertible Notes. However, potential dilution of shares may occur if many Dividend Warrants are exercised, and the redemption of warrants by the company could limit long-term benefits for shareholders.
Danimer Scientific is a leading bioplastics company focused on developing and producing biodegradable materials. The company’s technology is used in various plastic products that are biodegradable and compostable. Danimer holds numerous patents in over 20 countries for its manufacturing processes and biopolymer formulations.
The Dividend Warrants are not registered under the Securities Act of 1933, as the issuance of warrants for no consideration is not considered a sale of a security. The company has filed a prospectus supplement with the SEC to register the shares of Common Stock underlying the Dividend Warrants.
Overall, the completion of the dividend warrant distribution marks a significant milestone for Danimer Scientific and provides shareholders with the opportunity to participate in the company’s growth through the exercise of Dividend Warrants.