PureCycle announces registration of common stock for resale

ORLANDO, FL – PureCycle Technologies, Inc. (NASDAQ:PCT), a $1.64 billion market cap company specializing in plastics and synthetic resins currently trading at $9.12, has filed a prospectus supplement with the Securities and Exchange Commission (SEC). According to InvestingPro analysis, the company appears slightly undervalued at current levels. Announced today, the filing pertains to the registration for resale of up to 4,091,293 shares of common stock by identified selling stockholders.

The shares in question were originally acquired by the selling stockholders through a private placement financing, as detailed in PureCycle’s Current Report on Form 8-K filed on February 6, 2025. This move to register the shares for resale is in accordance with the company’s shelf registration statement on Form S-3ASR, which was declared effective on January 31, 2025.

Alongside the prospectus supplement, PureCycle has also submitted an opinion from the legal firm Jones Day, confirming the legality of the common stock being registered. This legal opinion is included as an exhibit in the Current Report on Form 8-K.

The registration of these shares does not necessarily mean that the selling stockholders will sell all or any of their shares, but it does provide them with the flexibility to do so in the public market. The company itself will not receive any proceeds from the sale of shares by the selling stockholders. InvestingPro data shows the company maintains a FAIR overall financial health score, though its current ratio of 0.59 indicates some liquidity challenges.

PureCycle’s common stock is listed on The Nasdaq Stock Market under the ticker symbol PCT, with additional securities including warrants (PCTTW) and units (PCTTU) also listed on the same exchange.

This latest filing is based on a press release statement and provides investors with updated information regarding the potential increase in the number of PureCycle’s shares available in the public domain. The stock has shown strong momentum with a 60.55% gain over the past six months, though it trades at a relatively high Price/Book ratio of 9.06. As always, the market will continue to monitor the impact of such filings on the company’s stock performance. For deeper insights into PCT’s valuation and 10+ additional exclusive ProTips, check out the comprehensive research report available on InvestingPro.

In other recent news, PureCycle Technologies has reported significant developments in its fourth-quarter earnings. The company achieved an increase in production at its Ironton facility, with the maximum feed rate reaching 12,500 pounds per hour, and produced 3.6 million pounds of resin, which led to the creation of 4 million pounds of compounded material. Despite missing specific earnings per share and revenue benchmarks, PureCycle announced strategic expansion plans, including projects in Augusta and Europe, that have contributed to a positive market outlook. The firm ended the quarter with $15.9 million in unrestricted cash, having raised $33 million in February through a private placement.

Cantor Fitzgerald has maintained its Overweight rating on PureCycle with a $14 price target, citing operational progress and potential sales growth. The company is engaged in over 20 trials, including collaborations with major consumer packaged goods companies, potentially leading to over 250 million pounds of resin sales. PureCycle has also provided Procter & Gamble with sales volume forecasts for 2025, anticipating the sale of approximately 4.4 million pounds of its PureFive compounded resin to P&G. Furthermore, P&G has secured exclusive rights for the North American region and extended exclusivity for other regions.

PureCycle’s financial standing includes $118.6 million in available revenue bonds and a $200 million line of credit, although its cash balance decreased from $93.7 million in the previous quarter. The company aims for breakeven economics at a 40-50% operating range for its Ironton facility, focusing on operational efficiency. Additionally, PureCycle’s CEO highlighted the company’s readiness to capitalize on customer sales and emphasized the unique standing of its technology in the market.

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