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  "documentTitle": "Danimer Scientific (DNMR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-04-22 00:00:00",
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  "notes": "Uses a quote-based contradiction framework to challenge management credibility.",
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      "text": "Spruce Point observes canola oil prices are exploding, and DNMR is exposed. The CEO's comments about hedging its exposure are not supported by documented disclosures in the Company's 10-K.",
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      "text": "Contrasting CEO statement with analyst question to expose risk",
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      "text": "Spruce Point observes canola oil prices are exploding, and DNMR is exposed. The CEO's comments about hedging its exposure are not supported by documented disclosures in the Company's 10-K. Even if Danimer can hedge its exposure, the increased cost will likely drive the total cost to customers, making Danimer's canola oil reliant product less competitive.",
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      "text": "\"And can you just comment on the spreads that you are making on your product these days, how you're pricing to customers, just given the price of feedstocks, the canola oil, going up?\" — Jonathan Tanwanteng, CJS Securities. \"Yes. Let me say 1 more thing in terms of kind of longer-term before I address that one specifically... canola oil is going up in price. About half of our current contracts have escalators in them that allow us to pass that on to the contracted customer. We put that language in every contract that we had that was multiyear. So in the 1-year contracts that we did, we didn't have that in there, but we had hedged... And we are also aggressively looking at alternatives, which we know there are a lot of alternatives, but obviously, we're looking for economical -- more economical alternatives, if you will. So that's an ongoing project.\" — Stephen Croskrey, CEO Danimer Scientific",
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      "text": "Source: Company transcript, Bloomberg",
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      "text": "Jonathan Tanwanteng (CJS Securities) asks about canola oil price impact. Stephen Croskrey (CEO) responds claiming hedging and cost pass-throughs.",
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      "text": "Risk From Significant Canola Oil Exposure",
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