Why Is Origin Materials Stock Down 15% Friday?

Origin Materials Inc (NASDAQ:ORGN) shares are trading lower Friday morning after the company moved ahead with a 1-for-30 reverse stock split, a step often watched closely by investors as a signal of efforts to maintain exchange compliance and reshape a deeply depressed share price. Here’s what investors need to know.

• Origin Materials shares are approaching critical lows. Why is ORGN stock at lows?

ORGN Stock Starts Friday Trading Adjusted For 1-for-30 Reverse Split

The company said the reverse split became effective March 19 after receiving shareholder approval at a Feb. 17 special meeting and board approval on March 4. Trading in the split-adjusted stock began Friday under the same Nasdaq ticker, ORGN.

Under the move, every 30 outstanding common shares were automatically converted into one share, while the par value remained unchanged.

Origin also said the split will reduce the number of shares tied to equity awards and warrants, with warrant holders now needing 30 warrants, at an aggregate exercise price of $345, to receive one share of common stock.

ORGN Shares Slide Friday Morning

ORGN Price Action: Origin Materials shares were down 15.34% at $2.87 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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