$ORGN: My letter to management regarding paying a special dividend as they go up for sale
$ORGN makes bottle caps from the same PET plastic that is used in the bottles, so this invention could be huge in the bottling and recycling industries.
However, they have fumbled the marketing and sales and are now up for sale and are closing up shop, after paying between $.61 and $3.54 to shareholders who own their small 5M shares outstanding.
Here is their proxy where they are describing the dissolution process: [https://www.sec.gov/Archives/edgar/data/1802457/000180245726000027/originmaterials-specialmee.htm](https://www.sec.gov/Archives/edgar/data/1802457/000180245726000027/originmaterials-specialmee.htm)
This is a special situation and it is not for the faint of heart, but to me this is an obvious mismanagement of the company IP, and cash position - **they have more than $30M in cash alone! this can not and should not be wasted, so I sent them a note asking for a special dividend to be paid to shareholders of record 30 days from now, ranging between $3 and $3.5 per share.**
I bought some stock at $1.33 and sold it at $2.24 during the early runup, and then bought again. Here is my note to management, similar to the one I sent to $AGAE where I nearly doubled my money when it ran up.
*Directors, Chairman, CEO,*
*I own ORGN stock, and I am writing regarding the latest proxy statement you filed on May 15th where you itemize the minimum and maximum liquidation value and lay out a plan for an eventual dissolution of the company.*
*It is unfortunate that you have not considered all options before taking the final step and deciding to dissolve the company.*
*I have decades of corporate finance experience, and this is my advice to you as you contemplate your options at the moment.*
***1. Declare and pay a $3-$3.5 per share special dividend to shareholders of record dated 30 days from now. This move will attract institutional funds and will make your stock extremely attractive***
***2. Retire the obligations and raise cash for operations with a limited convertible bond or preferred stock offerings, extremely slowly***
***3. Focus on selling your product and IP in Europe - they have already enacted highly restrictive regulations which people hate, so they can use the PET bottle cap idea as either a continuation of on their path to restrict plastic waste, or perhaps even roll back the current cap regulations and make everyone use PET caps.***
***4. Finally, and very importantly, do not underestimate the value of your firm from the onset. The PET bottle cap is a great and novel idea, which you have depreciated in the proxy documents, and this is very unfortunate. Know your worth.***
*I hope that you act fast on the special dividend first, but also on researching and exploring the European markets as your primary focus.*
So to me, the risk return here is favorable, and I own this stock and I will add, trim, or close the position. do your own research and formulate your own trades.
Good luck to all, cheers!
Here is my closed trade, in again around $1.54
https://preview.redd.it/wvfq87g3kv1h1.png?width=723&format=png&auto=webp&s=36fecce115819e8a5876f3e8a9252fdec1abd121