Origin Materials, Inc.

Origin Materials Announces 1-for-30 Reverse Stock Split: What Investors Need to Know

Introduction: Who is Origin Materials? Origin Materials, Inc. (NASDAQ: ORGN) is a leading sustainable materials company. It develops and commercializes plant-based technologies to replace petroleum-based materials across various industries, including packaging, textiles, and automotive. The company's mission is to decarbonize the world's materials supply chain.

1. Event Description: A 1-for-30 Reverse Stock Split Origin Materials has announced a 1-for-30 reverse stock split of its common stock. This means that for every 30 shares you currently own, you will now own one share. For example, if you held 300 shares, you will now hold 10 shares. While the number of shares decreases, the theoretical value of your total investment remains the same, as each new share will be priced proportionally higher.

2. Event Date/Timeline

• Board Approval: The company's Board of Directors officially approved the reverse stock split on March 4, 2026.
• Effective Date: The reverse stock split will become effective at 5:00 p.m. Eastern Time on March 19, 2026.
• Trading Adjustment: The company's common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market when the market opens on March 20, 2026, under its existing ticker symbol "ORGN."

3. Why the Reverse Split? Addressing Listing Requirements and Market Perception Companies typically undertake reverse stock splits for several key reasons. For Origin Materials, the primary drivers are:

• Nasdaq Listing Compliance: Origin Materials' stock price has traded below Nasdaq's minimum bid price requirement of $1.00 per share for an extended period. A reverse split is a critical step to increase the per-share price and regain compliance, preventing potential delisting from the Nasdaq Capital Market. Maintaining this listing is vital for the stock's liquidity and visibility to institutional investors.
• Improved Market Perception: A higher share price can make a stock appear more stable and attractive to a broader range of investors, including institutional funds that often have policies against investing in "penny stocks" (shares trading at very low prices).
• Shareholder Mandate: The company's stockholders previously approved the Board's authority to implement a reverse stock split at the Annual Meeting held on February 17, 2026, empowering the Board to determine the specific ratio.

4. Impact Assessment (who/what is affected)

• Common Stock Holders: You will own fewer shares, but each share will have a proportionally higher price. For instance, if the stock closed at $0.50 per share before the split, it would theoretically trade at $15.00 per share after the split (30 x $0.50).
• Fractional Shares: If the split would result in you owning a fractional share (e.g., 1.5 shares), Origin Materials will round up to the nearest whole share. This means if you owned 45 shares (which would become 1.5 new shares), you would receive 2 shares.
• Warrants (ORGNW): The terms of outstanding warrants will also adjust. For every 30 warrants you hold, they will now be exercisable for one share of common stock. The exercise price will also adjust proportionally. For example, if the original exercise price was $11.50 per share, it will become $345.00 per share (30 x $11.50).
• Equity Awards: Stock options, restricted stock units (RSUs), and other equity awards held by employees and directors will similarly adjust to reflect the new share count and exercise prices, maintaining their aggregate intrinsic value.

5. Financial Impact The reverse stock split is primarily a structural adjustment. It does not immediately alter the company's underlying business fundamentals or total market capitalization. However, it carries the following financial implications:

• Aggregate Value: The total market value of outstanding common stock immediately after the reverse stock split is expected to remain approximately the same as before the split.
• Par Value: The par value per share of the common stock will remain unchanged.
• Authorized Shares: The total number of authorized shares of common stock will remain unchanged.
• Earnings Per Share (EPS): Earnings per share and net loss per share will proportionally increase or decrease, respectively, due to the reduced number of outstanding shares.
• Market Capitalization: The reverse stock split itself does not directly affect the company's total market capitalization, as it merely changes the number of shares and their proportional price, not the underlying value of the company.
• Liquidity: A higher per-share price may improve the stock's liquidity by making it more attractive to institutional investors and brokerage firms that often have policies against investing in or recommending lower-priced stocks.

6. Broader Financial Context and Strategic Outlook While the reverse split addresses a critical listing requirement, investors should understand that this procedural adjustment does not directly alter the company's underlying business fundamentals or financial health.

• Financial Challenges: The need for a reverse split often signals underlying financial pressures. As a growth company in the pre-commercialization or early commercialization phase, Origin Materials may face ongoing capital requirements, slower-than-anticipated revenue generation, or higher-than-expected operational costs. Investors should review the company's latest financial statements (10-K, 10-Q filings) to understand its cash position, burn rate, and progress towards profitability.
• Business Strategy: Origin Materials' long-term strategy hinges on scaling its patented technology, securing off-take agreements, and bringing its first commercial plants (e.g., Origin 1 and Origin 2) online. The success of this strategy, rather than the stock split itself, will ultimately drive shareholder value.
• Risks: Beyond the general risks of a growth company, a reverse split carries the risk of negative market perception. The stock price may not sustain its higher level if underlying business challenges persist. Continued dilution through future capital raises also remains a possibility.

7. Key Takeaways for Investors

• Monitor Performance: Observe how the stock trades on and after March 20, 2026. While the price per share will be higher, sustained value will depend on the market's confidence in the company's operational execution and financial trajectory.
• Evaluate Fundamentals: Focus on Origin Materials' progress in achieving its strategic milestones: plant construction and commissioning, production volumes, customer agreements, and financial performance. These are the true drivers of long-term value.
• Due Diligence: A reverse stock split is a significant event. Investors should conduct thorough due diligence, reviewing the company's SEC filings, investor presentations, and financial reports to form an independent assessment of its prospects.

This reverse stock split is a necessary step for Origin Materials to maintain its presence on a major exchange. However, its ultimate success will be determined by its ability to execute its ambitious plan to revolutionize sustainable materials and achieve profitable growth.