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ORLANDO - PureCycle Technologies, Inc. (NASDAQ:PCT), a $2.13 billion market cap company whose stock has surged nearly 100% over the past year, has secured $300 million in funding to support its plan to build one billion pounds of plastic recycling capacity across three continents by 2030, according to a company press release. According to InvestingPro data, the company currently trades at a high Price/Book multiple of 9x, reflecting investor optimism about its expansion plans.
The U.S.-based plastic recycling company has entered agreements with several investors including Duquesne Family Office LLC, Wasserstein Debt Opportunities, Samlyn Capital, Pleiad Investment Advisors and Sylebra Capital Management. This funding comes at a crucial time, as InvestingPro analysis shows the company’s current ratio of 0.55 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.
Alongside the capital raise, PureCycle announced a new partnership with IRPC Public Company Limited to construct a 130-million-pound polypropylene recycling facility in Rayong, Thailand. Construction is scheduled to begin in the second half of 2025 with operations expected to start in mid-2027.
The company also outlined plans for a similar 130-million-pound facility in Antwerp, Belgium, projected to be operational in 2028, pending final permits expected in 2026.
In Augusta, Georgia, PureCycle plans to build a larger "Gen 2" facility with capacity exceeding 300 million pounds per year. Construction is expected to begin in mid-2026 with the preprocessing facility operational by mid-2026 and the purification line by 2029.
The funding comes through Series B convertible perpetual preferred stock with a conversion price at a 30% premium to the 10-day volume-weighted average price of PureCycle’s common shares following June 16, 2025. The shares will pay 7% annual cumulative dividends, payable in cash or in kind at the company’s discretion.
PureCycle anticipates the transactions will close on June 20, 2025.
J.P. Morgan Securities LLC is serving as lead placement agent with Cantor Fitzgerald & Co. as joint placement agent for the transaction.
In other recent news, PureCycle Technologies reported its first-ever revenue, marking a significant milestone for the company. The company produced 4.3 million pounds of resin in the first quarter at its Ironton facility and is holding approximately 14 million pounds of inventory. Cantor Fitzgerald has maintained its Overweight rating on PureCycle, with a price target of $12.00, highlighting the company’s unique market position and patented technology licensed through Procter & Gamble. PureCycle is engaged in over 30 customer trials, with 24 in the industrial stage, and has over 50 pending trials, which analysts believe could lead to substantial sales volumes. The company is also expanding its operations with a new facility planned in Georgia, expected to become operational in fiscal year 2027. Cantor Fitzgerald has expressed confidence in PureCycle’s ability to scale up operations, despite adjusting its price target from $14.00 to $12.00. The company is targeting operational breakeven at its Ironton facility by the third quarter of 2025 and is exploring multiple financing paths to support its growth initiatives.
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