PureCycle Technologies Raises $300M for Expansion

By Bobby Samwell • Tuesday, June 17 10:12 • Permanent Link

PureCycle Technologies, Inc. (NASDAQ: PCT) has announced a significant capital raise of $300 million, which is set to facilitate the company's growth plan to bring one billion pounds of installed capacity online by 2030 across the United States, Europe, and Asia. The funding is a result of binding agreements with new and existing investors, including Duquesne Family Office LLC, Wasserstein Debt Opportunities, Samlyn Capital, Pleiad Investment Advisors, and Sylebra Capital Management.

The company has also revealed a new partnership with IRPC Public Company Limited to build a polypropylene (PP) recycling facility in Thailand, with a 130-million-pound line expected to become operational in mid-2027. Additionally, PureCycle plans to construct a 130-million-pound line in Antwerp, and after integrating the learnings from its Ironton facility into the base design package, the company will enhance the Augusta facility to accommodate a larger Gen 2 line. The final Gen 2 design for Augusta, with a projected capacity of greater than 300 million pounds per year, is expected to be announced in early 2026.

The company is also advancing the permitting process in Europe and expects to receive final permits in 2026, with the Antwerp facility projected to be operational in 2028. Construction for the Gen 2 facility in Augusta is expected to commence in mid-2026, and the first Augusta purification line is anticipated to be operational in 2029.

The press release also outlines the terms of the Series B Convertible Perpetual Preferred Stock, which have a conversion price equal to a 30% premium to the 10-day VWAP of the company's common shares following the market close on June 16, 2025. The convertible shares will pay cumulative dividends at a rate of 7% per annum, payable in kind or cash at the company's option.

PureCycle anticipates that the transactions will fund and close on June 20, 2025. The press release further states that J.P. Morgan Securities LLC is acting as the lead placement agent, and Cantor Fitzgerald & Co. is acting as the joint placement agent for the transaction, with Jones Day and Davis Polk & Wardwell LLP serving as legal advisors.

The company will hold a conference call to discuss the capital raise and expansion plans on June 17, 2025, with a live Q&A session for analyst participants. The presentation accompanying the conference call is available on the company's website.

These developments reflect PureCycle's commitment to revolutionizing plastic recycling and its strategic efforts to expand its global footprint and operational capacity in the coming years. The market has reacted to these announcements by moving the company's shares 4.67% to a price of $11.87. For the full picture, make sure to review PureCycle Technologies's 8-K report.

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