WEST SACRAMENTO, Calif., May 15, 2026, 4:07 PM PDT
- Origin Materials told shareholders it wants their approval to liquidate and dissolve the company.
- The company put its first liquidation payout between $0.61 and $3.54 per share, depending on asset sales and claims.
- ORGN traded up about 15% to $1.43. The stock hit $2.23 earlier.
Origin Materials shares climbed Friday after the sustainable-materials firm gave an estimated initial liquidation payout of $0.61 to $3.54 a share. That range was disclosed in a preliminary proxy statement filed May 15. Investors now have a clearer idea of what could be available if a wind-down goes ahead.
Origin is shifting from pitching growth to working through a liquidation. The company wants stockholders to sign off on a Plan of Complete Liquidation and Dissolution, which would let the board handle asset sales, settle claims, and send whatever cash is left to holders.
Origin Materials shares last traded at $1.43, up around 15%, with volume at about 23.6 million shares. The stock hit $2.23 earlier in the session, market data showed.
Origin said it will start the initial distribution after it files a certificate of dissolution, finishes selling off any non-cash assets, and settles creditor claims and contingent liabilities. The company said it can’t say exactly when or how much will be distributed.
The warning isn’t just standard language. The filing also said bigger-than-expected claims, expenses or reserves could lower or even wipe out the payout. Shareholders might get nothing if creditor claims or other costs come in above forecasts.
Origin’s board signed off on the dissolution plan after wrapping up a strategic review and unsuccessful financing talks, the company said. The board decided staying in business was unlikely to add more value than winding down, according to the proxy.
Origin Materials, Inc.’s first-quarter filing, out on May 14, put the need for the vote in sharp focus. Revenue plunged 91% to $477,000 for the quarter ended March 31, down from $5.4 million a year ago. Net loss was $17.7 million, narrower than the $26.4 million loss in the same period last year.
Origin reported $32.6 million in cash, cash equivalents and marketable securities as of March 31. But it also had an accumulated deficit of $305.5 million. The company said there’s “substantial doubt” about its ability to keep going, raising questions about whether it can operate for the next year without dissolving or taking other steps. SEC
Origin has begun layoffs. The company said in a May 1 filing that it cut about 59% of its employees, aiming to save $14 million a year on operating costs. Origin expects about $2.1 million in restructuring charges, mostly for severance and benefits.
John Bissell left the CEO job on May 1 but is still on the board. Matt Plavan, who was CFO and COO, took over as interim CEO. Plavan said earlier this month that getting customers qualified and manufacturing optimized is a “critical prerequisite” for scaling up, but the company also said new fundraising efforts failed. Origin Materials, Inc.
Origin is looking to sell its polyethylene terephthalate (PET) cap technology and assets. PET is widely used in beverage packaging. In a proxy, Origin said it’s focusing on large closure companies in a $65 billion market. It didn’t mention bidders, so there’s no direct comparison to bigger packaging suppliers.
Origin warned that trading could stop before the process finishes. If stockholders OK the plan, the company said it will close its transfer books on the final record date when it files for dissolution, and shares are not expected to trade after that.
