PureCycle Technologies, Inc. (PCT) has secured a series of financing transactions with Sylebra Capital Management and Samlyn Capital, LLC, raising $90 million.
The deal includes the issuance of $50 million in Series A Preferred Stock with a three-year maturity and an 8% return, a sale of 8.5 million common stock shares at $4.69 each, and warrants to purchase 5 million shares of common stock at $11.50 per share. Additionally, Sylebra Capital extended its $200 million line of credit to PureCycle through March 31, 2026.
This funding will enable PureCycle to advance its cutting-edge polypropylene purification technology. The company has positioned itself as a leader in the emerging recycled polypropylene market, with this significant investment highlighting investor confidence. The preferred stock issuance provides PureCycle with substantial capital without diluting its equity base.
CEO Dustin Olson emphasized that this capital infusion would bolster both ongoing operations and additional activities linked to the Augusta project. The company's progress at its flagship facility in Ironton, Ohio, reinforces the positive outlook for PureCycle's future.
Progress at Ironton Facility and Commercial Expansion
PureCycle has made significant strides at its Ironton facility, where production is ramping up following the installation of a new co-product two (CP2) removal system. The company aims to streamline the removal process and eliminate a production bottleneck. Early September marked a shift toward production, with feed rates surpassing 10,000 pounds per hour and daily processing volumes exceeding 200,000 pounds of feedstock.
The company continues to target its third-quarter goal of one million pounds of production in a single week, driven by sustained improvements in feed rates and uptime. CEO Olson expressed optimism, noting that PureCycle is entering a new phase as it transitions from a pre-revenue entity to a fully operational commercial enterprise.
In terms of commercialization, PureCycle is making headway with its compounding strategy and customer sampling efforts. By the end of September, the company plans to compound one million pounds, with over three million pounds projected monthly for the fourth quarter. Much of this material is expected to serve the fiber market, reflecting early successes with these applications.
Investor Confidence in PureCycle’s Future
Sylebra Capital Management’s Chief Investment Officer, Dan Gibson, expressed confidence in PureCycle's long-term prospects. He noted that the production milestones achieved at Ironton are proof of the company’s operational momentum. The demand for recycled materials, driven by corporate sustainability goals, remains immense and unmet. Gibson sees PureCycle’s technology as key to addressing this market gap, enhancing optimism for the company’s future success.
As PureCycle continues to scale up its operations and boost production, the company remains on track to meet increasing demand for recycled polypropylene, solidifying its role as a leader in the sustainable materials sector.
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