Danimer Scientific

$DNMR is aiming to eliminate 500 billion pounds of plastic trash by offering a 100% biodegradable solution that is fully degradable in 12-18 weeks after the product is discarded

The industry is expect to grow 40-60% per year through 2025

Technology:

Technology called PHA (Polyhydroxyalkanoates) which is essentially a polyester produced from fermented vegetable oils and extracted to create bio plastics

They have 125 patents across 20 different countries, purchased from Procter & Gamble for this technology

History:

- Founded in 2004
- Bought IP from P&G in 2007
- Food and Substance Contact Notification approval in 2014
- First polymer to be marine degradable in 2015
- R&D with Pepsi and Nestle 2016-2018
- Supply contracts in 2019
- Construction of shipment facility in 2020

Partnerships:

$DNMR has Strong partnerships with CPG Brands, Including Pepsi and Nestle, and Key Converters such as Wincup and Genpak

Equity Investment from Pepsi of 6%

Customers:

Contract at Walmart for 2 years to sell the Phade straw line

Additionally supplying via trial to:

Starbucks AndDunkin for straws

Nestle for their pure life water bottles

Pepsi to create biodegradable bags for chips such as Fritos, Doritos, and Lays

Financials:

-CAGR of 59% to 2025 and 130% for 2021
- Net income and EBITA positive with projected growing margins
-2020 estimated cash of 365 million which reduces the risk of major dilution

Competitors:

Danimer Scientific $DNMR clearly believes they are the top dog in this space as seen from the image below

Management:

CEO Stephen Croskrey, former CEO of Armor Holdings, owns 87MM worth of shares so I believe our interests are aligned.

Board Member Dr. Isao Noda is one of the world’s leading authorities in the field of polymer science

Risks:

Scaling is often the most difficult part of a business. This business will need to rapidly scale to meet demand.

Some contracts need to still be won or renewed

I’m NOT an expert in bioplastics

Better technology could come along

NOT an asset light business

Conclusion:

Bioplastics tailwinds are and $DNMR has impressive company growth projections . As a bonus I’m able to invest in the future I want to see.

Few major contacts and it’s off to the races. I’ve started a small (1.5% position) based on the R/R personally.

I’d be curious to hear your thoughts below! Thanks for taking the time to read this thread

*This is not intended to be a recommendation to buy, sell, or hold. I encourage everyone to do your own research and due diligence*