Why did Origin Materials, Inc. (ORGN) stock skyrocket in premarket?

Origin Materials, Inc. (ORGN) jumped to 6.24% in the premarket today after the company reported third-quarter 2021 results. However, the last trading session closed at $7.53 with an incline of 2.45%.

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Third Quarter 2021 results – What are the updates?

ORGN released third-quarter 2021 results on 11th November 2021. According to the report issued by the company, there was $460 million in cash, cash equivalents, and marketable securities. Moreover, operating costs were $7.1 million in the third quarter, $2.0 million more than the previous year.

The third quarter’s adjusted EBITDA loss was $5.7 million, up from $1.9 million the year before. In the third quarter, the company earned $27.9 million, compared to a loss of $3.1 million the previous year. As of September 30, 2021, there were 136.8 million shares outstanding, excluding 4.5 million shares held by a single shareholder that are liable to forfeiture according to previously revealed share price performance objectives.

Company’s opinions on Q3 results

The company is making progress on the aim to help the world transition to sustainable materials, and they are thrilled to report that the primary production modules at Origin 1 have been installed six months ahead of schedule, as promised in April 2021. Customer demand is high as the globe advances more aggressively toward a zero-carbon future, and the efforts to commercialize the business have resulted in $4.2 billion in offtake agreements and capacity reservations from our customers and partners.

Since the company has announced its intention to become a public company in February 2021, its stock has increased by more than 300 percent. Lastly, ORGN is excited to announce its recent partnership agreement with Kolon Industries, Inc., a global leader in chemicals and products, as well as our sustainable development collaboration with the Drive+ network, which includes 11 of the world’s largest automakers operating to speed up the auto industry’s decarbonization.

Strategic Partnership with Kolon – Worth it?

On 8th November 2021, ORGN announced that it has established a strategic agreement to commercialize innovative polymers and drop-in solutions for a limited number of applications, with an initial focus on automotive. Using Kolon’s polymerization knowledge, application development, and supply chain strength, this strategic alliance intends to swiftly create and industrialize innovative sustainable carbon-negative goods based on Origin Materials’ proprietary technology platform. Kolon announced a multi-year capacity reserve agreement with Origin Materials to acquire sustainable carbon-negative materials as part of the cooperation.

Moreover, the collaboration will include co-development aimed at commercializing polyethylene furanoate, a polymer with an appealing combination of performance requirements for wrapping and other implementations, including improved barrier properties, rapid degradation, and other qualities when compared to polyethylene terephthalate.