Origin Materials is a capital-intensive business, Bissell said.
The speed and certainty of listing via SPAC played a role in the decision, but the quantity of accessible capital was the key factor in the decision to go the SPAC route, he said.
About Origin Materials: The company takes woody biomass and converts it into materials, Bissell told Benzinga.
The process it uses allows for a “lower carbon footprint,” he said.
The only credible competitor in the existing fossil materials industry, Bissell said, adding that “the market is enormous.”
Origin Materials has a plant under construction that will be ready by the end of 2022 and is expected to start showing revenue in 2023, Bissell said.
The company plans to build a “significantly larger” second plant that is expected to be completed halfway through 2025 and show a partial year of revenue the same year, he said.
The Origin Materials Investors: Benzinga’s Chris Katje mentioned that Pepsi, Danone, and Nestle invested in the PIPE and will own 11% of the company.
The three companies have been “incredible partners” of Origin Materials for several years, Riley said.
“You will see us continue to add more big brands and partners” as Original Materials move forward, he said.
A $1-trillion total addressable market exists in which materials must transition from fossil-based to sustainable, Riley said. Textiles, apparel, and fibers are a larger part of that market than packaging, the co-CEO said.
The company can be price competitive with fossil materials because of the company’s “low-cost feedstock,” Riley said.
AACQ Price Action: Artius Acquisition shares lost 1.18% Thursday, closing at $10.04.