Meredian Holdings Group, Inc., doing business as Danimer Scientific, a next-generation bioplastics company focused on the development and production of biodegradable materials, and Danimer Scientific, Inc., formerly known as Live Oak Acquisition Corp. have completed their previously announced business combination. Live Oak was a special purpose acquisition company (SPAC) with no commercial operations and was formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Live Oak changed its name back to Danimer Scientific, Inc. after completion of the IPO.
The common stock of Danimer Scientific will trade under the ticker symbol “DNMR” on the New York Stock Exchange beginning 20 December 2020. The Company’s signature polymer, Nodax™ PHA (polyhydroxyalkanoate), is a 100% biodegradable, renewable, and sustainable plastic produced using canola oil as a primary feedstock. Danimer claims that its Nodax™ PHA is the first PHA polymer to be certified as marine-degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics.
Danimer Scientific is currently producing and shipping Nodax™ at a commercial scale level from its existing facility in Winchester, Kentucky. The Company has partnered with key manufacturers and consumer products companies such as PepsiCo, Nestlé, Bacardi, Genpak, WinCup, Columbia Packaging Group, Kemira and Plastic Suppliers Inc. Based on signed and pending contracts, the Company said it is fully sold out of all of its production in its Kentucky facility and will use its increased capital base to significantly increase production in seeking to meet the expected current and long-term demand of its customer base.
As a result of the IPO, Danimer Scientific will now have approximately $380 million of unrestricted cash, net of transaction costs, on the balance sheet to fully fund future, planned growth, including the expansion of its current Kentucky facility and the build-out of its contemplated greenfield facility. These funds are primarily comprised of cash from Live Oak’s former trust account and concurrent equity private placements from institutional investors, including certain funds managed by affiliates of Apollo, Federated Hermes Kaufmann Small Cap Fund, and over $50 million from Live Oak affiliates.
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