Shares of PureCycle Technologies, Inc. (NASDAQ: PCT) are experiencing a significant rise on the US stock charts following the announcement of an equity move and production update. As of the latest market check, PCT stock had increased by 24.09%, trading at $5.82. The market’s favorable reaction to the company’s recent strategic moves and updates on its manufacturing capability is reflected in this boost.
PureCycle Made An Equity Move
PureCycle announced raising of $90 million in gross proceeds through a series of transactions with Samlyn Capital, LLC and Sylebra Capital Management in order to strategically improve its financial situation.
On September 13, 2024, these transactions are anticipated to be finished. They entail the issue of $50 million in three-year-term, 8% yielding Series A Preferred Stock. Additionally, the business sold 8.5 million shares of common stock for $4.69 a share, generating net profits of $40 million.
In addition, PureCycle issued warrants with an expiration date of December 1, 2030, for the acquisition of five million shares of common stock at an exercise price of $11.50 per share. This financial plan also called for the $200 million line of credit from Sylebra Capital to be extended until March 31, 2026.
PCT To Fuel Market Expansion and Technological Advancements
With the large amount of money obtained, PureCycle will be able to continue developing its unique purifying method, which will likely have a big effect on the market for recovered polypropylene.
Sylebra Capital and Samlyn Capital’s investment shows their faith in PureCycle’s technology as well as its leadership in the market. The preferred stock issuance is particularly beneficial, allowing the company to secure additional funding without diluting the value of existing equity.
Production Milestones at the Ironton Facility
Alongside the financial updates, PureCycle provided important updates on its flagship purification facility in Ironton, Ohio. The company completed the installation and commissioning of modifications to the co-product two (CP2) removal system, a critical step toward optimizing production efficiency.
With a single day’s processing of over 200,000 pounds of feedstock and hourly feed rates exceeding 10,000 pounds, PureCycle achieved remarkable output achievements. These advancements position the company to meet its third-quarter goals and promote long-term success.
