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WEST SACRAMENTO, CA—John Bissell, CEO and Director of Origin Materials, Inc. (NASDAQ:ORGN), recently sold 55,000 shares of the company's common stock, valued at approximately $55,000. The transaction took place on December 27, 2024, with shares sold at a price of $1 each. The stock has since shown strong momentum, gaining over 18% in the past week and trading significantly above its 52-week low of $0.44. This sale was conducted to cover tax withholding obligations associated with the vesting and settlement of restricted stock units, as noted in the filing.
Earlier in the week, on December 23, Bissell acquired 450,000 shares of common stock at no cost. These shares represent restricted stock units that vest over three years, contingent on Bissell's continued service with the company. Following these transactions, Bissell holds 1,976,230 shares of Origin Materials directly.
Origin Materials, headquartered in West Sacramento, California, is known for its work in the industrial organic chemicals sector. With a market capitalization of approximately $182 million, the company currently appears undervalued according to InvestingPro analysis, which offers 12 additional investment tips for this stock in their comprehensive Pro Research Report.
In other recent news, Origin Materials, Inc. announced a reshuffling of its executive team, with Rich Riley stepping down as Co-Chief Executive Officer and Board member, effective December 31, 2024. John Bissell will take over as the sole CEO, while the current CFO, Matt Plavan, will also serve as Chief Operating Officer. These leadership changes coincide with the company's financial challenges, as indicated by a gross profit margin of 11.4%.
In addition to these changes, Origin Materials has reported a successful Factory Acceptance Test of its CapFormer System and plans to begin commercial production of PET caps. This development is part of the company's strategy to capture a share of the $65 billion caps and closures market. The company expects to generate initial revenue from caps in the first quarter of 2025 and aims for positive EBITDA by the first half of 2026.
Origin Materials continues to explore strategic partnerships and is in ongoing discussions for additional business in the caps and closures sector. The recent Q3 revenue increased to $8.2 million from $7.1 million year-over-year, maintaining a solid cash position of $113 million. Despite these optimistic projections, the company's cash balance has seen a reduction in the past year.
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