Origin Materials Stock Price, News & Analysis

Origin Materials, Inc. (ORGN) is described as a technology company with a mission to enable the world’s transition to sustainable materials. The company is listed on The Nasdaq Capital Market under the symbol ORGN and is associated in industry data with the broader mining, quarrying, and oil and gas extraction sector through its focus on materials and biomass-derived inputs.

According to its public disclosures and press releases, Origin Materials focuses on developing and commercializing PET caps and closures, specialty materials, and a patented biomass conversion platform that transforms carbon into sustainable materials for a wide range of end products. The company positions its PET caps and closures as products that bring recycling circularity and enhanced performance to a caps and closures market that it describes as being worth more than $65 billion.

Business focus and technology platform

Origin Materials states that its technology platform produces PET caps that it characterizes as commercial-ready and commercially viable. These PET caps are intended for use on PET bottles and are associated with attributes the company highlights, such as recyclability and the potential to support mono-material PET packaging. Origin Materials reports that its PET 1881 caps are being developed and commercialized for applications beginning with non-carbonated water and extending to other beverage and non-beverage segments.

The company also emphasizes its biomass conversion platform, which it describes as patented and capable of transforming carbon from biomass into sustainable materials. In earlier descriptions, Origin Materials has referred to products including PET circular caps and closures, para-xylene, carbon black, levulinic acid and other outputs derived from biomass, with potential end uses in areas such as packaging, textiles, plastics, automotive components, carpeting, tires, adhesives, soil amendments, and fuels. These references underscore the company’s focus on materials that can reduce reliance on fossil resources.

PET caps and closures strategy

In recent press releases, Origin Materials has provided detail on its go-to-market approach for PET caps and closures. The company describes a “water first” strategy, initially targeting the non-carbonated water segment of the caps market with its 1881 PET closure. It has announced that PET bottlecaps using its technology have appeared on store shelves in connection with a pilot launch for an alkaline water brand, and that customers are qualifying or preparing to qualify its caps.

Origin Materials highlights several performance dimensions for its PET caps, including recyclability, oxygen and CO2 barrier performance, closure diameter, thickness, rigidity, use of recycled content, and optical clarity. The company also notes work on impact resistance and multi-day heated horizontal stress testing as part of qualification for carbonated soft drink applications.

Manufacturing and CapFormer lines

Origin Materials describes a manufacturing approach centered on proprietary CapFormer production lines. These lines convert PET sheet into bottlecaps, including 1881 closures and potentially other formats. The company reports that its first CapFormer system is producing PET caps in Reed City, Michigan, and that additional CapFormer lines are in various stages of fabrication, testing, shipment, and deployment.

The company has also disclosed a strategic partnership with Royal Hordijk Packaging in Europe, under which Hordijk uses PET extruders to produce extruded sheet for use in CapFormer lines owned by Origin and operated in Hordijk facilities in the European Union. This arrangement is described as supporting mass production of PET bottlecaps and contributing to geographic diversification of manufacturing.

Commercial relationships and market positioning

Origin Materials has announced a strategic customer relationship with Berlin Packaging for sustainable PET bottlecaps. Under this relationship, Berlin Packaging has agreed to purchase PET 1881 caps from Origin for sale and distribution to its customer base, which includes major beverage companies. The company has also referenced a signed strategic customer agreement with a large packaging company for the development of large format PET closures for ready-to-drink, wine, and spirits applications, and a pilot launch with a smaller beverage brand for alkaline water.

In its public statements, Origin Materials indicates that more than twenty companies are qualifying or preparing to qualify its caps, including companies on the Fortune 500 list. It also notes that its customer qualification funnel includes both water brands and potential carbonated soft drink customers, and that it is pursuing multiple functional segments within the caps and closures market.

Financing, equipment, and capital structure

Origin Materials has reported using a combination of equipment financing and corporate-level debt to support its manufacturing build-out. In an 8-K filing, the company disclosed a securities purchase agreement for senior secured convertible notes with a principal face amount of up to $100 million, issued with an original issue discount and convertible into common stock at a specified initial conversion price, subject to adjustments. The notes are secured by a first-priority security interest in substantially all of the company’s personal property assets, subject to permitted liens and exclusions, and include customary events of default.

The company has also disclosed a secured promissory note entered into by a wholly owned subsidiary to finance equipment used to produce PET sheet, with the note secured by a security interest in the financed equipment. Origin Materials has indicated that it is pursuing equipment financing for multiple CapFormer lines and additional equipment financing capacity to support its capital expenditure plans.

Listing status and Nasdaq notifications

Origin Materials’ common stock trades on The Nasdaq Capital Market. In an 8-K filing, the company reported that it had received a notice from Nasdaq that its common stock did not meet the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2), and that it was granted an additional 180-day period to regain compliance. The company stated its intention to monitor the closing bid price and evaluate options, including the possibility of a reverse stock split, to address the deficiency. The filing also describes the potential for delisting if compliance is not regained and notes the company’s ability to appeal any delisting determination.

Legal matters and settlements

Origin Materials has announced that it entered into binding agreements to settle a shareholder class action lawsuit and a related derivative lawsuit in the United States District Court for the Eastern District of California. The company states that the proposed settlements resolve all claims asserted against Origin and the other named defendants, without any liability or wrongdoing attributed to them or the company, and that the settlements are subject to court approval. In a subsequent press release, Origin Materials indicated that the settlement would be fully covered by insurance.

Non-GAAP metrics and financial communication

In its earnings releases, Origin Materials discusses the use of non-GAAP financial measures, including Adjusted EBITDA, as supplemental metrics to review and assess operating performance. The company defines Adjusted EBITDA by reference to net loss adjusted for various non-cash and non-routine items and explains that it uses this measure for evaluating business performance, budgeting, and comparison with peers. It also notes the limitations of non-GAAP measures and provides reconciliations to the most comparable GAAP measures in its releases.

FAQs about Origin Materials, Inc. (ORGN)

• What does Origin Materials, Inc. do?
  Origin Materials describes itself as a technology company focused on enabling the transition to sustainable materials. It develops PET caps and closures, specialty materials, and a patented biomass conversion platform that transforms carbon into sustainable materials for various end products.
• What are Origin Materials’ key products?
  Public disclosures highlight PET caps and closures, including PET 1881 caps for beverage applications, as well as specialty materials produced through its biomass conversion platform. Earlier descriptions also reference products such as PET circular caps and closures, para-xylene, carbon black, and levulinic acid derived from biomass.
• How is Origin Materials involved in sustainable packaging?
  Origin Materials emphasizes PET caps that can support mono-material PET packaging, recyclability, and circularity. It states that its PET caps can contribute to improved recycling outcomes and enhanced performance characteristics such as barrier properties and light-weighting.
• What is the CapFormer system mentioned by Origin Materials?
  CapFormer is the name Origin Materials uses for its PET cap production lines. These systems convert PET sheet into bottlecaps, including 1881 closures, using high-speed equipment. The company reports that its first CapFormer system is producing PET caps and that additional lines are being deployed.
• Which markets does Origin Materials target with its PET caps?
  Origin Materials describes a “water first” strategy, initially focusing on non-carbonated water caps. It also references plans and customer interest in carbonated soft drinks, other beverage applications, and non-beverage uses such as food and pharmaceutical packaging.
• What strategic partnerships has Origin Materials announced?
  The company has announced a strategic customer relationship with Berlin Packaging for PET 1881 caps and a strategic partnership with Royal Hordijk Packaging to mass produce PET bottlecaps in Europe. It has also referenced a signed strategic customer agreement with a major packaging company for large format PET closures.
• On which exchange does ORGN trade?
  Origin Materials’ common stock trades on The Nasdaq Capital Market under the ticker symbol ORGN. The company has also reported receiving a Nasdaq notice related to the minimum bid price requirement and an additional compliance period to address it.
• How does Origin Materials describe its biomass conversion platform?
  Origin Materials describes its platform as patented and capable of transforming carbon found in biomass into sustainable materials. These materials are intended for use in a wide range of end products, including packaging and other applications referenced in the company’s earlier descriptions.
• Has Origin Materials been involved in shareholder litigation?
  Yes. Origin Materials has disclosed a shareholder class action lawsuit and a related derivative lawsuit. The company reports that it has entered into binding agreements to settle these matters, with the proposed settlements resolving all claims without any liability or wrongdoing attributed to the company, subject to court approval.
• What types of financing has Origin Materials used to support its growth?
  Origin Materials has reported entering into a senior secured convertible note financing with an institutional purchaser and a secured promissory note to finance PET sheet production equipment. It has also discussed pursuing additional equipment financing and corporate debt to support its CapFormer build-out and maintain a minimum cash balance.