Core Viewpoint - PureCycle Technologies has experienced a significant stock surge following a major investment announcement, indicating strong investor confidence in the company's growth potential and expansion plans [1][5]. Funding and Investment - PureCycle has raised $300 million through convertible preferred stock, which offers a 7% coupon and converts to common equity at a 30% premium to the stock's 10-day volume-weighted average price prior to the announcement [2]. - Notable investors in this funding round include Sylebra Capital Management, Samlyn Capital, and Stanley Druckenmiller's Duquesne Family Office, among others [2]. Expansion Plans - The company plans to expand its second U.S. facility in Augusta and construct two new international recycling plants in Thailand and Antwerp, with funding allocated for these developments [3]. - PureCycle anticipates generating $600 million in annual EBITDA by 2030 once the new facilities are fully operational [3]. Market Performance - Following the investment announcement, PureCycle's stock price increased significantly, nearing the preferred shares conversion threshold, driven by robust expansion plans and notable investor participation [5]. - The company's market capitalization is approximately $2.6 billion, which will increase by another $300 million upon conversion of the preferred shares to common stock [6].

PureCycle Technologies Growth Capital Raise Corporate Update Conference Call Summary Company Overview - **Company**: PureCycle Technologies (PCT) - **Event Date**: June 17, 2025 - **Key Speakers**: Dustin Olson (CEO), Jamie Vasquez (CFO), Eric Gennantale (Director of Investor Relations) Key Points Industry and Market Context - PureCycle operates in the recycled polypropylene (PP) market, which is experiencing significant growth due to increasing demand for sustainable materials and regulatory changes favoring recycled content [6][10][12] - The global PP market is projected to grow by approximately 7 billion pounds annually, with PureCycle aiming to capture a portion of this market [30] Growth Plans and Capacity Expansion - PureCycle plans to increase its installed capacity to **1,000,000,000 pounds** following a **$300,000,000** capital raise [3][6] - The expansion is expected to generate approximately **$600,000,000** in EBITDA by February [6] - The company is focusing on establishing facilities in **Thailand**, **Antwerp**, and **Augusta** to optimize costs and meet global demand [15][21][22] Financial Metrics and Capital Expenditure - Total capital expenditure (CapEx) for the expansion is estimated at **$2,000,000,000**, with expectations to keep CapEx per pound below **$2** [24][62] - The Thailand facility's all-in cost is projected to be around **$220,000,000**, translating to **$1.4 to $1.7 per pound** [58] - The Antwerp facility is expected to have a higher CapEx, around **$300,000,000**, but still aims for competitive pricing [59] Operational Improvements and Technology - PureCycle has made significant operational progress at its Ironton facility, achieving on-stream times approaching **90%** and producing pellets for **65 consecutive days** [8] - The company has developed a world-class R&D facility in Durham, North Carolina, enhancing its technological capabilities [10] - The learnings from Ironton are being integrated into future designs to improve reliability and efficiency [34][77] Customer Engagement and Market Demand - Strong endorsements from key customers such as Drake, Churchill, and Bruckner indicate growing commercial interest [9] - Regulatory changes, such as Extended Producer Responsibility (EPR) and minimum recycled content laws, are driving demand for high-quality recycled materials [12][40] - The company anticipates that its growth plan will facilitate discussions with major global brands, enhancing its market position [42] Strategic Partnerships and Global Footprint - Collaboration with IRPC in Thailand is expected to reduce CapEx and operational costs due to existing infrastructure [18][19] - The global footprint allows PureCycle to source feedstock and distribute products efficiently, meeting customer sustainability needs [15] Future Outlook - PureCycle aims to penetrate less than **0.5%** of the total global polypropylene market by 2030, setting the stage for continued growth [13][30] - The company is optimistic about its ability to scale operations and meet increasing demand for recycled materials [41][62] Conclusion - PureCycle is positioned as a leader in the recycled polypropylene market, with a robust growth plan supported by significant capital investment and operational improvements [30][83] - The next five years are expected to be transformative for the company, with a strong focus on expanding capacity and enhancing product offerings [83]

Transaction Highlights - PureCycle is raising $300 million through a perpetual preferred offering with new and existing investors[7] - The capital raise aims to unlock a path to 1 billion pounds of installed capacity and $600 million in annual EBITDA by 2030[7] - The company expects the offering to de-risk the balance sheet and open additional capital sources exceeding capital expenditures by over $300 million during the investment period[7, 21] Capacity Expansion and Timeline - The company plans to reach approximately 1 billion pounds of installed capacity by the end of 2029[11] - Thailand facility (130 million pounds capacity) is expected to be operational by mid-2027[7, 11] - Antwerp facility (130 million pounds capacity) is expected to be operational by mid-2028[11] - Augusta Gen 2 Line 1 (300+ million pounds capacity) is targeted for commissioning in Q1 2029[18] - A second Gen 2 line (300+ million pounds capacity) is planned for either Thailand or Augusta, targeted for operation in Q3 2029[7, 13] Cost and Efficiency Improvements - The Thailand project is expected to have operating costs 40% below Ironton's[7, 11] - Future Gen 2 designs are projected to have operating costs approximately 50% below Ironton's[7, 11] - Capital expenditure for future Gen 2 lines is estimated to be less than $2 per pound[11] IRPC Partnership (Thailand) - PureCycle is partnering with IRPC, a Thai polyolefin producer, leveraging their existing infrastructure[7, 17] - IRPC holds approximately 31% local market share in Thailand[17] - The Thailand site will have a capacity of 130 million pounds per year[7]

Core Viewpoint - PureCycle Technologies, Inc. (PCT) has shown a 17% gain over the past four weeks, with a mean price target of $12.20 indicating a potential upside of 67.4% from the current price of $7.29 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $4.27, indicating variability among analysts; the lowest estimate is $6 (17.7% decline), while the highest is $18 (146.9% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement direction, although it does not guarantee the stock will reach the average target [9] Earnings Estimates and Analyst Optimism - Analysts are optimistic about PCT's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 16.3%, with one estimate moving higher and no negative revisions [12] Zacks Rank and Investment Potential - PCT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside in the near term [13]

Group 1 - PureCycle Technologies reported a quarterly loss of $0.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.25, representing an earnings surprise of -8% [1] - The company posted revenues of $1.58 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 43.57%, compared to zero revenues a year ago [2] - PureCycle Technologies shares have declined approximately 36% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] Group 2 - The earnings outlook for PureCycle Technologies is mixed, with the current consensus EPS estimate for the coming quarter at -$0.19 on $14 million in revenues, and -$0.80 on $61.8 million in revenues for the current fiscal year [7] - The Waste Removal Services industry, to which PureCycle Technologies belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The first quarter of 2025 marked the first reported revenues in the company's history, indicating significant progress [6][25] - The company ended the quarter with $37.5 million in cash, including $22.5 million of unrestricted cash, and raised just under $55 million through various transactions [30][31] Business Line Data and Key Metrics Changes - The company is currently engaged in over 30 trials, with 24 progressing to industrial stages, representing over £300 million in potential product sales [8][16] - The operational improvements led to the production of 4.3 million pounds of resin in the quarter, with an inventory of approximately 14 million pounds [23][25] Market Data and Key Metrics Changes - The company has seen increased interest in its products, particularly in the fiber and film markets, with significant potential for growth in these segments [21][22] - The BOPP film market is highlighted as a major opportunity, with the company successfully testing its product with Bruckner, a leading equipment supplier [20][21] Company Strategy and Development Direction - The company is focusing on a compounding strategy to better serve customer needs and improve operational flexibility, introducing two product lines: Pur5 Ultra and Pure5 Choice [10][12] - Future growth plans include scaling technology to higher capacities, reducing capital and operational expenditures, and improving overall profitability [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving meaningful EBITDA and cash flow, with 2025 expected to be a transformative year for the company [9][118] - The company is optimistic about the demand for its products, which is expected to outstrip supply, and is preparing for a revenue ramp in the second half of 2025 [51][85] Other Important Information - The company has made significant operational progress, achieving an on-stream time of almost 90% in April, a substantial improvement from previous performance [23][25] - The company is pursuing multiple paths of financing for its growth plans and intends to update the market with details once finalized [28][29] Q&A Session Summary Question: Strategy for selling inventory - Management decided to hold back some inventory to sell at higher values later in the year due to faster-than-expected performance in customer trials [35] Question: Growth plans and future facilities - The company is excited about growth plans, leveraging learnings from Ironton to design larger, more efficient plants [39][41] Question: Backlog and trial momentum - Management confirmed that the backlog has increased and that there is momentum in converting trials from pilot to industrial stages [49] Question: Pricing structure for products - The company is seeing a shift towards feedstock plus pricing, which is gaining traction among customers [68] Question: Liquidity and cash burn - Management expects cash burn to improve in the second half of the year as inventory is sold and operations stabilize [76][77] Question: Impediments to achieving full nameplate capacity - The company has made significant progress in reliability and is confident in ramping production as customer demand increases [108][109]

Financial Data and Key Metrics Changes - The first quarter of 2025 marked the first reported revenues in the company's history, indicating significant progress [6][25] - The company ended the quarter with $37.5 million in cash, including $22.5 million of unrestricted cash, and raised just under $55 million through various transactions [31] Business Line Data and Key Metrics Changes - The company is currently engaged in over 30 trials, with 24 progressing to industrial stages, representing over £300 million in potential product sales, an increase from the previous quarter [8][16] - The operational improvements led to the production of 4.3 million pounds of resin in the quarter, with an on-stream time of almost 90% in April, a significant improvement from previous performance [24][25] Market Data and Key Metrics Changes - The BOPP film market is identified as a significant opportunity, with the company successfully conducting trials with Bruckner, a leading equipment supplier, which could open doors to many brand owners [20][22] - The company anticipates that the demand for its products will continue to outstrip supply, with a nameplate capacity of 107 million pounds [52] Company Strategy and Development Direction - The company is focusing on a compounding strategy to better serve customer needs and provide operational flexibility, introducing two product lines: Pur5 Ultra and Pure5 Choice [10][12] - Future growth plans include scaling technology to higher capacities, which will reduce capital and operational expenditures, ultimately improving profitability [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving meaningful EBITDA and cash flow, citing operational reliability improvements and successful customer trials [9][25] - The company views 2025 as a transformative year, with expectations for significant revenue ramp-up in the second half of the year [51][119] Other Important Information - The company has made substantial operational progress at Ironton, with improvements in quality and reliability, and plans to continue optimizing economics [24][28] - The company is pursuing multiple paths of financing for future growth plans, with a focus on maintaining a strong cash position [29][31] Q&A Session Summary Question: Strategy regarding inventory and sales - The company decided to hold back some inventory to sell at higher values later in the year due to faster-than-expected performance in customer trials [34][36] Question: Growth plans and future facilities - Management discussed the learnings from Ironton that will inform future facility designs, aiming for larger plants that lower operational costs and improve returns [38][40] Question: Momentum in trials and commercialization - Management confirmed that 2025 is expected to be a transformative year, with continued progress in customer trials and a focus on flexibility in production allocation [50][52] Question: Pricing structure and liquidity - The company is seeing a shift towards feedstock plus pricing models, which are gaining traction among customers, and expects to minimize cash burn through inventory sales and revenue bonds [66][71] Question: Impediments to achieving full nameplate capacity - Management noted that reliability issues have been addressed, and they are confident in ramping production as customer demand increases [107][110]

First Quarter 2025 Corporate Update May 7, 2025 Confidential Information. Do Not Distribute. 11 Confidential Information. Do Not Distribute. Forward-Looking Statements This press release contains forward-looking statements, including statements about the continued execution of PureCycle's business plan, the expected results of tests and trials, the expected timing of commercial sales, and planned future updates. In addition, any statements that refer to projections, forecasts or other characterizations of f ...

Financial Performance - PureCycle Technologies, Inc. reported first quarterly revenues of approximately $1.6 million during Q1 2025, with ongoing customer trials expected to lead to higher future revenues [258]. - The company reported approximately $1.6 million in revenues for the first quarter ended March 31, 2025, marking its first period of meaningful operations and sales [286]. - Total cost of operations increased by approximately $2.1 million for the three months ended March 31, 2025, compared to the same period in 2024, driven by higher production-related costs and employee-related expenses [287]. - Research and development expenses decreased by approximately $0.3 million for the three months ended March 31, 2025, primarily due to lower employee costs [288]. - Selling, general and administrative expenses decreased by approximately $1.5 million for the three months ended March 31, 2025, mainly due to lower legal costs [289]. - The company experienced an operating loss of $37.7 million for the three months ended March 31, 2025, an improvement of $1.3 million compared to the same period in 2024 [285]. - As of March 31, 2025, the company had approximately $22.5 million in cash and cash equivalents and $15.0 million in restricted cash [299]. - Net cash used in operating activities for Q1 2025 was $38.9 million, a slight improvement from $39.2 million in Q1 2024 [308]. - Cash used in investing activities for Q1 2025 was approximately $15.0 million, compared to cash provided of $32.0 million in Q1 2024 [311]. - Net cash provided by financing activities was approximately $49.8 million in Q1 2025, a significant increase from net cash used of $255.4 million in Q1 2024 [312]. - The company reported a decrease in cash and cash equivalents from $41.5 million at the beginning of the period to $37.5 million at the end of Q1 2025 [308]. - The company raised approximately $33.0 million through a private placement of 4,091,293 shares at a price of $8.0655 per share on February 5, 2025 [303]. - As of March 31, 2025, the company had $99.0 million of outstanding bonds intended for re-marketing to enhance liquidity [305]. - The company has a $200.0 million unused Revolving Credit Facility with Sylebra Capital, expiring on September 30, 2026, accruing interest at SOFR plus 17.5% [305]. Operational Developments - The Ironton Facility is expected to have a production capacity of approximately 107 million pounds of PureFive™ resin per year when fully operational, with commissioning activities ongoing [257]. - The Augusta Facility is projected to have a total production capacity of approximately 1 billion pounds of PureFive™ resin per year, with each purification line expected to produce around 130 million pounds annually [260]. - The company has committed to creating 82 full-time jobs and investing at least $440 million by December 31, 2026, to receive certain incentive benefits related to the Augusta Facility [261]. - The research and development lab in Durham, North Carolina, opened in 2024, focusing on developing analytical techniques and supporting zero-waste efforts [259]. - The Feedstock Evaluation Unit has been operational since July 2019, producing PureFive™ resin and serving as a pilot scale for the larger commercial line [256]. - The company is focused on improving operating rates, reliability, and product quality at the Ironton Facility while engaging in customer sampling and qualifications [257]. - The company plans to build and operate additional Feed PreP facilities geographically near feed sources to optimize supply chain economics [273]. - The company announced plans for its first European purification facility in Antwerp, Belgium, and is also looking to expand production capabilities into Asia [278]. - The company received FDA food contact clearances for its PureFive™ resin, allowing it to be used in contact with all food types under specified conditions [276]. - The company is currently in various stages of customer application trials, which are anticipated to generate revenue growth in future periods [286]. Strategic Initiatives - The company has a global license for its patented dissolution recycling technology from Procter & Gamble, which was amended in 2025 to extend exclusivity terms [252]. - The construction of the Augusta Facility is subject to progress requirements, with potential risks of losing incentive benefits if milestones are not met [266]. - The company is currently pursuing various structures for project financing of the Augusta Facility due to market conditions creating uncertainty [266]. - The company plans to seek additional debt or equity financing to support future growth and investment needs [306]. - The company is exploring additional financing options to support its growth strategy and operational needs [10.2]. - The company is in the process of expanding its market presence and has made amendments to its credit agreements to support growth initiatives [10.3][10.5]. - The company has engaged in strategic mergers and acquisitions to bolster its market position, as evidenced by the agreement and plan of merger dated November 16, 2020 [2.1]. Governance and Compliance - The CEO and CFO provided certifications for the financial results, ensuring compliance with regulatory requirements [31.1][31.2][32.1][32.2]. - PureCycle Technologies has undergone significant corporate governance changes, including amendments to its certificate of incorporation and bylaws [3.2][3.3][3.5]. - PureCycle Technologies is committed to transparency and has made efforts to provide detailed financial disclosures in compliance with SEC regulations [337]. Future Outlook - Future outlook remains optimistic as the company continues to innovate and expand its operational footprint in the industry [10.1]. - The company is actively pursuing new product development and technological advancements to enhance its operational capabilities [10.4]. - Financial statements indicate a focus on improving stockholder equity and cash flow management for the quarter [336].

[PureCycle Technologies, Inc. Form 8-K Filing (May 7, 2025)](index=1&type=section&id=PureCycle%20Technologies%2C%20Inc.%20Form%208-K%20Filing%20%28May%207%2C%202025%29) [Item 2.02: Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02%3A%20Results%20of%20Operations%20and%20Financial%20Condition) PureCycle Technologies, Inc. announced its first quarter 2025 financial results via a press release and incorporated investor presentation information - The company issued a press release on **May 7, 2025**, announcing its financial results for the **first quarter ended March 31, 2025**[8](index=8&type=chunk) - The press release is attached as **Exhibit 99.1** and incorporated by reference into this report[8](index=8&type=chunk) - Information from the investor presentation (Item 7.01) is also incorporated by reference into this item[8](index=8&type=chunk) [Item 7.01: Regulation FD Disclosure](index=3&type=section&id=Item%207.01%3A%20Regulation%20FD%20Disclosure) A slide presentation, attached as Exhibit 99.2, was made available to investors on May 7, 2025, for current and future communications - An investor slide presentation was made available on **May 7, 2025**[9](index=9&type=chunk) - The presentation is attached to the report as **Exhibit 99.2** and incorporated by reference[9](index=9&type=chunk) [Item 9.01: Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%3A%20Financial%20Statements%20and%20Exhibits) This section lists exhibits filed with the Form 8-K, including the financial results press release, investor presentation, and Inline XBRL cover page Exhibits Filed with the Form 8-K | Exhibit Number | Description of Exhibit | | :--- | :--- | | 99.1 | Press Release by PureCycle Technologies, Inc., dated May 7, 2025 | | 99.2 | PureCycle Technologies, Inc. presentation to investors | | 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL |