Short-seller Spruce Point Capital Management’s “smoking gun evidence of pricing inflation and slackness in capacity” at Danimer Scientific has prompted a response from Richard Ivey, Marketing Manager. Based on information obtained from the filing of a Freedom of Information Act (FOIA) request, Spruce Point Capital Management said that Danimer Scientific's “production figures, its pricing, and rosy financial projections simply do not add up.”
In his response, Danimer’s Ivey stated that “Spruce Point Capital’s inaccurate, deliberately misleading short-selling ‘research’ lacks appropriate context and demonstrates a limited understanding of our business and the decades of extensive research, proven science, and execution capabilities our company is built on.
“Their self-serving reports conflate unrelated and/or erroneous data points and are riddled with incomplete, dated, and irrelevant information, weaving together a false narrative that is designed solely to destroy shareholder value for their own gain,” Ivey said. “We will not be distracted from driving value for our shareholders and other stakeholders through our commitment to developing renewable and biodegradable replacements for traditional plastics to help solve the global plastic waste crisis. We look forward to providing an update on our business results and operational performance on our upcoming earnings call.”
The earnings call is scheduled for May 17.
Editor's note: Since publication of this article, Danimer Scientific CEO Stephen E. Croskrey has issued a more-detailed statement clarifying the company's technology and business model. You can read our report here.