PureCycle Technologies Sees Significant Surge After Major Cash Infusion

September 11, 2024 06:09 PM PDT | By Team Kalkine Media

PureCycle Technologies Sees Significant Surge After Major Cash Infusion — Image source: Shutterstock

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Headlines

- PureCycle Technologies received $90 million in funding from private equity partners, boosting investor confidence.

- The company is advancing its polypropylene recycling technology, with notable progress at its Ironton, Ohio, plant.

- Management plans to ramp up processing capabilities and expects to start generating substantial revenue in the fourth quarter.

PureCycle Technologies (NASDAQ:PCT)experienced a notable surge in its stock value, climbing nearly 40% in response to a major cash infusion. The company, which focuses on advancing its polypropylene recycling technology, attracted significant investment, alleviating previous investor concerns.

Today, PureCycle announced a successful $90 million fundraising effort from existing private equity partners, Sylebra Capital Management and Samlyn Capital, LLCThis investment comprises $50 million in preferred stock and an additional $40 million through an equity raise priced at $4.69 per share, which aligns with the previous day's closing stock priceFurthermore, PureCycle issued 5 million warrants to its partners, convertible into stock at $11.50 per share, with an expiration set for December 1, 2030.

The investment is a welcome boost for PureCycle, which had approximately $11 million in cash at the end of the last quarterThis financial support comes alongside positive developments at the company's Ironton, Ohio, facilityRecent updates reveal that the plant processed 10,000 pounds of material per hour and achieved a daily processing rate of 200,000 pounds on two separate days in SeptemberManagement has ambitious goals, targeting a processing capacity of 1 million pounds for the month and scaling up to 3 million pounds per month by the fourth quarterThis expansion is expected to contribute significantly to the company's revenue generation as it nears full-scale commercialization of its recycling technology.

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