Danimer Scientific (NYSE:DNMR) shares are trading lower after Muddy Waters issued a bearish short report on the company.
“In our view, DNMR has misled investors about having over $200 million of ‘take or pay’ agreements. We feel it has misled investors by stating that its only impediment to selling more product is lack of capacity when the products it hopes to sell do not yet exist. It expressly claimed that it can sell everything it produces, but in actuality the demand for its products appears to be quite weak.” said Muddy Waters Capital in the short report.
Danimer Scientific Inc creates more sustainable, more natural ways to make plastic products sold under the proprietary Nodax brand name. The company’s renewable and sustainable biopolymers have helped create plastic products that are 100% biodegradable and compostable.
At last check, the stock was trading 16% lower at $14.48. Danimer Scientific’s 52-week high is $66.30 and and 52-week low is $13.07.