Origin Materials Inc. (ORGN) is having a rough Monday. The stock cratered after the company announced it would sell its technology and then wind down operations entirely. It's the kind of news that makes you check your portfolio twice.
The company, which makes sustainable PET caps and closures, said its board approved a reduction in force to fund customer qualification work and a strategic sale of its PET cap technology. After that, the plan is to wind down, liquidate, and dissolve—pending shareholder approval.
As part of the layoffs, several executive team members are leaving. CEO John Bissell is stepping down but will stay on the board. CFO and COO Matt Plavan has been appointed interim CEO.
“Our ongoing work to support customer qualification processes and to optimize our products for manufacturing is a critical prerequisite to commercially scaling this technology, and continues to be our primary focus during this period,” Plavan said.
He also noted the company's cash crunch: “We previously reported that, absent near-term financing and reductions in operating expenses, our existing cash and cash equivalents would allow us to continue our planned operations into the third quarter of 2026.”
In March, the company had already executed a 1-for-30 reverse stock split to prop up its share price. That didn't stick.
At publication, Origin Materials shares were down 46.24% at $1.43, hitting a new 52-week low. It's a stark end for a company that once aimed to revolutionize sustainable packaging.
