PureCycle Technologies, Inc. (NASDAQ: PCT) has announced a series of financing transactions with Sylebra Capital Management and Samlyn Capital, LLC to raise gross proceeds of $90 million. The transactions include an issuance of $50 million of Series A preferred stock with a three-year maturity and an 8% return, a common stock sale of 8.5 million shares at a price of $4.69 per share for total net proceeds of $40 million, the issuance of warrants to purchase 5 million shares of common stock, and the extension of Sylebra Capital’s $200 million line of credit to March 31, 2026.
The capital raised is expected to enable PureCycle to continue executing its plan to bring its world-leading purification process to the market. PureCycle's Chief Executive Officer, Dustin Olson, stated that this capital not only supports the company's existing operations but will also help fund additional activities associated with its Augusta project.
In addition to the financing update, PureCycle provided several updates on its flagship purification facility in Ironton, Ohio. The company completed the installation and commissioning of the modifications to the co-product two (CP2) removal system, allowing it to remove the CP2 bottleneck from its production constraints. The Ironton facility achieved feed rates of over 10,000 pounds per hour and processed more than 200,000 pounds of feedstock in one day.
PureCycle also reported progress on the commercialization front, with approximately 500,000 pounds compounded to date, another one million pounds planned for September, and over three million pounds per month planned for the fourth quarter. The company expects the majority of this material to be sourced into the fiber market following its early successes with these applications.
Dan Gibson, CIO of Sylebra Capital Management, expressed confidence in PureCycle's long-term success, emphasizing the increasing consumer focus on corporate sustainability goals and the immense and unmet demand for recycled material.
The financing transactions and operational progress demonstrate the company's momentum as it transitions from a pre-revenue company to a commercial operation. PureCycle's focus on production and commercialization efforts, combined with the confidence of participating investors, underscores the company's leadership position in the emerging recycled polypropylene market. Today the company's shares have moved 10.3% to a price of $8.82. If you want to know more, read the company's complete 8-K report here.
