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Spruce Point Capital Management’s "self-serving" reports are designed solely to destroy shareholder value for its own gain, fires back Danimer Scientific.

Clare Goldsberry

May 10, 2021

1 Min Read
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Image: Ra2 studio/Adobe Stock

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.

About the Author(s)

Clare Goldsberry

Until she retired in September 2021, Clare Goldsberry reported on the plastics industry for more than 30 years. In addition to the 10,000+ articles she has written, by her own estimation, she is the author of several books, including The Business of Injection Molding: How to succeed as a custom molder and Purchasing Injection Molds: A buyers guide. Goldsberry is a member of the Plastics Pioneers Association. She reflected on her long career in "Time to Say Good-Bye."

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