Third Quarter 2024 Corporate Update November 7, 2024 Confidential Information. Do Not Distribute. 11 Confidential Information. Do Not Distribute. TM Forward-Looking Statements This press release contains forward-looking statements, including statements about the continued expansion of PureCycle's business plan, the expected time of commercial sales, the commercialization of Ironton operations, the expected increase in production of the Ironton operations, the planned compounding operations, the sourcing of ...

Financial Results - The company issued a press release on November 7, 2024, detailing its financial results and operational updates[4] - The presentation to investors included key financial metrics and strategic initiatives for future growth[5] Stock Information - The company is listed on The Nasdaq Stock Market under the symbol PCT for common stock[2]

Group 1: Market Sentiment and Short Interest - Understanding bearish sentiment around stocks can be enhanced by analyzing short interest, which indicates how much investors are betting against a stock [1] - Stocks with high short interest that are trading near their 52-week highs suggest that short sellers have not yet profited significantly, indicating potential for future gains if the stock price declines [2] - High short interest combined with a stock price near its 52-week high may signal overvaluation, making long positions risky [3] Group 2: Company Analysis - PureCycle Technologies - PureCycle Technologies (PCT) has seen a stock price increase of nearly 250% in 2024, currently trading just 10% below its 52-week high, with a high short interest of 27% [3][4] - The company focuses on recycling polypropylene (PP), a plastic that is not effectively recycled by traditional methods, aiming to sell recycled PP to manufacturers [4] - Despite its eco-friendly technology, PureCycle is valued at over $2 billion with essentially $0 in revenue, raising concerns about its profitability compared to established firms in the recycling industry [5][6] Group 3: Company Analysis - NuScale Power - NuScale Power (SMR) has experienced a stock price increase of over 550% in 2024, trading just 1% below its 52-week high, with a high short interest of 23% [7] - The company is developing small modular reactors (SMRs) to meet increasing electricity demand, particularly from data centers that prefer nuclear energy for its reliability [8] - Despite the theoretical appeal of SMRs, none are currently operational in the US, raising questions about their commercial viability [8] Group 4: Company Analysis - Trupanion - Trupanion (TRUP), a pet insurance provider, has seen a stock price increase of 79% in 2024, with a short interest of 25% and trading just 2% below its 52-week high [9] - The company has hundreds of millions in quarterly revenue and is nearly profitable on a non-adjusted basis, which is a positive sign compared to its peers [10][11] - However, Trupanion is one of only five U.S.-traded insurance stocks worth over $1 billion that reported a net loss in the last 12 months, raising concerns about its profitability in a growing industry [11]

Core Viewpoint - PureCycle Technologies is experiencing significant stock price growth, up over 250% this year, attracting investor attention and analyst ratings, including an overweight rating from Cantor Fitzgerald with a price target of $14 [1][5] Company Overview - PureCycle Technologies focuses on recycling polypropylene (PP) into ultra-pure recycled (UPR) resin, which can be used to create new plastic products [1] - The company aims to address the low recycling rate of PP, which is approximately 3%, compared to 15% for polyethylene terephthalate (PET) [2] Recycling Technology - PureCycle employs a solvent dissolution method for recycling, which is more effective for PP than traditional mechanical recycling, allowing for the removal of impurities and maintaining material integrity [3][4] - The solvent dissolution process is energy-efficient but remains costly [4] Financial Situation - Currently, PureCycle has no revenue and is working to scale its processing operations to achieve a target of 107 million pounds of annual production at its Ironton facility [5] - The company reported a significant cash burn, averaging -$38 million from operations over the last three quarters, and plans to raise $90 million through equity issuance [6] Market Challenges - Despite its innovative approach, the company faces challenges in the recycling industry, as evidenced by the struggles of larger competitors like Indorama Ventures to maintain profitability [7] - Analysts currently hold a "Hold" rating on PureCycle, indicating caution in the investment outlook [8]

PureCycle Technologies, Inc. (NASDAQ:PCT) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Christian Bruey - Director of Corporate Communications Dustin Olson - CEO Jaime Vasquez - CFO Conference Call Participants Hassan Ahmed - Alembic Global Advisors Eric Stine - Craig-Hallum Capital Markets Brian Butler - Stifel Thomas Boyes - TD Cowen Gerard Sweeney - ROTH Capital Operator Good day, and thank you for standing by. Welcome to the PureCycle Technologies Second Quarter 2024 C ...

cgdeaw/iStock via Getty Images PCT a recap of the business IronTon Progress is a big positive PCT conducted a site tour, and the CEO shared a lot of information as he walked around. A recording of the tour is on the PCT website. Technical Progress PCT Finances My concerns with PCT operations have been reduced. I now believe they will solve the technological problems, and they have proven that the IronTon site can operate at high volume and produce high-quality output. They still have issues to resolve but I ...

Core Viewpoint - The investment outlook for PureCycle Technologies, Inc. has shifted from a buy recommendation to a hold due to concerns over management execution and deteriorating financials [1][13]. Industry Overview - The polypropylene (PP) market is substantial, with an annual input of 170 billion pounds, expected to grow at a 3.5% CAGR through FY27. However, only 5% of PP is recycled annually, indicating a significant technology gap in efficient recycling [2]. Company Performance - Since the last analysis, PureCycle's stock has increased by nearly 40%, outperforming small-cap peers by almost 2x [3]. - The company's primary recycling facility, Ironton, has a potential capacity of 107 million pounds per year but has faced operational challenges, delaying full operations initially expected by the end of 2023 to "later in 2024" [4][5]. Operational Challenges - Ironton has encountered mechanical issues, including seal failures and leaking beads, leading to production delays and reliability concerns [5][6]. - The company struggles with removing co-product 2 from feedstock, which can range from 2-15% but has been as high as 10-15%, complicating the recycling process [7]. Financial Health - PureCycle's unrestricted cash balance has decreased significantly, from over $200 million to just $27.2 million, indicating a precarious financial situation [8]. - Operating cash outflow reached a record -$39 million in Q1, with additional capital expenditures of $12.5 million for Ironton and $47 million for the Augusta facility anticipated [9][10]. - The company may need to rely on revenue bonds for funding, contingent on Ironton's ability to produce meaningful volumes [11]. Revenue Projections - Revenue expectations have been revised downward, with forecasts for FY24 sales now at $36 million, significantly lower than previous estimates of $103 million, while FY25 projections are around $126 million [12]. Market Position - At a stock price of $5.60, PureCycle is positioned in the middle of a long-term descending channel, suggesting a balanced risk-reward scenario [14]. - The company may attract interest from aggressive investors due to its relative underperformance compared to other material stocks, with a current relative strength ratio at half its long-term average [15]. - There is potential for short covering momentum, as 29% of the float is short, with days to cover exceeding 25 [16].

PART I - Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Net loss significantly increased to **$85.6 million** in Q1 2024, driven by higher operating costs, interest expense, and a **$21.2 million** debt extinguishment loss [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$734.0 million** from **$1.04 billion** at year-end 2023, primarily due to reduced cash and debt extinguishment, impacting equity Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2024 (Unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $25,021 | $73,411 | | Total current assets | $51,171 | $162,645 | | Property, plant and equipment, net | $642,017 | $638,746 | | **TOTAL ASSETS** | **$734,015** | **$1,039,373** | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $43,570 | $55,610 | | Long-term debt, less current portion | $242,937 | $467,708 | | **TOTAL LIABILITIES** | **$397,176** | **$619,137** | | **TOTAL STOCKHOLDERS' EQUITY** | **$336,839** | **$420,236** | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Net loss surged to **$85.6 million** in Q1 2024, driven by a **$21.2 million** debt extinguishment loss, higher operating costs, and increased interest expense Statements of Comprehensive Loss (in thousands, except per share data) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Operating costs | $21,194 | $7,372 | | Total operating costs and expenses | $38,982 | $21,821 | | Interest expense | $15,054 | $657 | | Change in fair value of warrants | $13,944 | $4,835 | | Loss on debt extinguishment | $21,214 | $— | | **Net Loss** | **$(85,607)** | **$(25,842)** | | **Loss per share (Basic & Diluted)** | **$(0.52)** | **$(0.16)** | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased from **$420.2 million** to **$336.8 million** in Q1 2024, primarily due to the **$85.6 million** net loss - The company's accumulated deficit grew from **$(344.2) million** to **$(429.8) million** during the first quarter of **2024**, reflecting the net loss of **$85.6 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$39.2 million** in Q1 2024, with **$255.4 million** used in financing, resulting in a **$262.6 million** net cash decrease Summary of Cash Flows (in thousands) | | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(39,178) | $(14,755) | | Net cash provided by investing activities | $32,027 | $52,739 | | Net cash used in financing activities | $(255,423) | $(1,632) | | **Net (decrease) increase in cash and restricted cash** | **$(262,574)** | **$36,352** | | Cash and restricted cash, end of period | $39,940 | $263,875 | [Notes to the Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial condition, debt, and legal matters, addressing going concern doubts and a major **99%** Revenue Bond extinguishment - The company's financial statements have been prepared assuming it will continue as a going concern, but recurring losses and negative cash flows raise substantial doubt, which management believes its plans, including the ability to re-market purchased bonds, alleviate[34](index=34&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - On March **5**, **2024**, a subsidiary purchased **99%** of the outstanding Revenue Bonds, accounted for as a debt extinguishment, resulting in a **$21.2 million** loss[67](index=67&type=chunk) - Subsequent to quarter-end, the company reached a tentative settlement in the Consolidated Theodore Lawsuit for **$12 million** and a separate MOU to settle derivative lawsuits for **$3 million**, both to be funded primarily by D&O insurance[186](index=186&type=chunk)[187](index=187&type=chunk) - On May **7**, **2024**, the company agreed to sell approximately **$94.3 million** in par value of its repurchased bonds to Pure Plastic LLC, with consideration including full prepayment of a **~$45.5 million** term loan and **$30 million** in cash[191](index=191&type=chunk)[192](index=192&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Ironton Facility delays, Augusta facility plans, and Q1 2024 net loss of **$85.6 million**, addressing going concern doubts [Overview of Operations](index=36&type=section&id=Overview%20of%20Operations) The company's Ironton Facility faces mechanical challenges delaying full production, while Augusta facility plans proceed amid financing uncertainty - The Ironton Facility has commenced pellet production but is experiencing intermittent mechanical challenges that are delaying it from reaching consistent, sustainable production rates, with full operation expected later in **2024**[205](index=205&type=chunk)[208](index=208&type=chunk) - The Augusta, GA facility is planned to have up to eight production lines with a total capacity of **1 billion** pounds per year, with approximately **$88.0 million** invested in pre-construction and long-lead equipment for Phase One as of March **31**, **2024**[210](index=210&type=chunk)[211](index=211&type=chunk) - The company is pursuing project financing for the Augusta Facility but is limiting expenses and adjusting its timeline due to challenging market conditions and uncertainty[216](index=216&type=chunk) - Future international expansion includes a planned facility in Antwerp, Belgium, and a joint venture with SK geo centric for a facility in Ulsan, South Korea[225](index=225&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Total operating costs and expenses increased **79%** to **$39.0 million** in Q1 2024, driven by higher operating costs and a **$21.2 million** debt extinguishment loss Comparison of Operating Results (in thousands) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating costs | $21,194 | $7,372 | $13,822 | 187% | | Selling, general and administrative | $15,957 | $12,695 | $3,262 | 26% | | Total operating costs and expenses | $38,982 | $21,821 | $17,161 | 79% | | Interest expense | $15,054 | $657 | $14,397 | 2,192% | | Loss on debt extinguishment | $21,214 | $— | $21,214 | 100% | | **Net loss** | **$(85,607)** | **$(25,842)** | **$(59,765)** | **231%** | - The increase in operating costs was primarily due to **$7.9 million** in higher depreciation as the Ironton Facility assets were placed in service, and **$4.3 million** in increased operational site costs[232](index=232&type=chunk) - Interest expense surged due to new financing in **2023** (including **$250M** in green convertible notes) and the cessation of interest capitalization for the Ironton Facility[235](index=235&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company had **$25.0 million** in cash as of March 31, 2024, with management addressing going concern doubts through bond re-marketing plans Liquidity Summary (in millions) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $25.0 | $73.4 | | Debt Securities Available for Sale | $2.2 | $48.2 | | Restricted Cash | $14.9 | $229.1 | | Gross Long-term Debt and Related Party Note Payable | $318.3 | $564.2 | - Management believes its current unrestricted liquidity is insufficient to fund operations and future growth, raising substantial doubt about its ability to continue as a going concern[248](index=248&type=chunk) - To alleviate liquidity concerns, the company purchased **99%** of its outstanding Revenue Bonds, reducing restricted cash and providing the ability to re-market these bonds for future liquidity needs[249](index=249&type=chunk) Cash Flow Summary (in thousands) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(39,178) | $(14,755) | | Net cash provided by investing activities | $32,027 | $52,739 | | Net cash used in financing activities | $(255,423) | $(1,632) | [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures have occurred since the most recent Annual Report on Form 10-K - Information about market risks as of March **31**, **2024**, does not materially differ from that included in the company's most recent Annual Report on Form **10-K**[279](index=279&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of March **31**, **2024**[281](index=281&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of **2024**[282](index=282&type=chunk) PART II - Other Information [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are detailed in Note 11, with management not expecting a material adverse effect on financial position or results - For a description of legal proceedings, the report refers to Note **11**, "Commitments and Contingencies," in the financial statements[285](index=285&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the most recent Annual Report on Form 10-K - No material changes from risk factors previously disclosed in the most recent Annual Report on Form **10-K** have been reported[288](index=288&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **98,651** common shares at an average price of **$6.07** per share in Q1 2024 for tax withholding obligations Purchases of Equity Securities by the Issuer | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | January 1 to January 31 | — | $— | | February 1 to February 29 | — | $— | | March 1 to March 31 | 98,651 | $6.07 | | **Total** | **98,651** | **$6.07** | [Other Information](index=49&type=section&id=Item%205.%20Other%20Information) PCT LLC agreed to sell **$94.3 million** in repurchased Revenue Bonds, repaying a **$45.5 million** loan and receiving **$30 million** cash - On May **7**, **2024**, PCT LLC agreed to sell **~$94.3 million** in par value of its held Revenue Bonds to Pure Plastic LLC[297](index=297&type=chunk) - The transaction will result in the full payoff of a **~$45.5 million** term loan and provide PCT LLC with **$30 million** in cash[298](index=298&type=chunk) - In connection with the deal, the company will issue Series B Warrants to Pure Plastic, allowing the purchase of **~3.1 million** common shares at **$11.50** per share[302](index=302&type=chunk)[307](index=307&type=chunk)

Exhibit 99.1 PureCycle Technologies Provides First Quarter 2024 Update Orlando, Fla. – May 7, 2024, – PureCycle Technologies, Inc. (Nasdaq: PCT), a U.S.-based company revolutionizing plastic recycling, today, announced a corporate update for the first quarter ending March 31, 2024. Management Commentary PureCycle Chief Executive Officer Dustin Olson said, "We had a productive quarter in Ironton and were able to start providing existing and future customers with resin from the commercial facility, so they co ...

Financial Data and Key Metrics Changes - Unrestricted cash declined by just under $90 million during Q4 2023, primarily due to a $50 million increase in the general liquidity reserve as part of the second amendment to the Ironton revenue bond [24] - Operating corporate-related expenses were $27.5 million for Q4, adjusted for severance related to a previously announced reduction in force, aligning with expectations [52] - The company increased its line of credit from $150 million to $200 million to rebuild liquidity post-bond repurchase [54] Business Line Data and Key Metrics Changes - Pellet production increased five times from 200,000 pounds to 1.3 million pounds, with a single-day feed record of 102,000 pounds and a single-day palletization record of 144,000 pounds [11] - CP2 production increased from 16,000 pounds to 48,000 pounds from January to February 2024 [40] - The company achieved end-to-end production rates of approximately 8,000 pounds per hour, successfully producing significant quantities of co-products [55] Market Data and Key Metrics Changes - There is stronger demand for the company's product than originally expected, with a shorter supply of good quality competition [17] - The company is seeing positive market feedback for its product, which offers a true plastic-to-plastic solution with benefits that other technologies do not provide [47] Company Strategy and Development Direction - The company plans to focus on core operations to achieve higher continuous plant rates and drive more consistent product quality [10] - A Q2 outage is planned to implement reliability improvements, which is expected to significantly impact operational performance [41] - The company is transitioning into traditional manufacturing processes, improving reliability, and optimizing operations [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future fundamentals of the business, particularly post-Q2 outage [106] - The company is confident in its ability to source feedstocks and does not foresee long-term constraints in availability [69] - Management highlighted the importance of building a strong foundation for the plant to ensure long-term productivity [91] Other Important Information - The company successfully purchased around 99% of the $249 million Southern Ohio Court Authority revenue bonds, removing restrictive covenants and allowing for better operational focus [25] - The company is working on a project to flake sort material produced from the prep wet line to process more post-consumer curbside material [44] Q&A Session Summary Question: How challenging is it to engineer around CP2? - Management acknowledged that CP2 presents a challenging technical problem but believes a good design solution is in place for development in Q2 [29] Question: Is there a challenge in sourcing feedstock with lower CP2 content? - Management confirmed that they have a good feedstock network and do not expect sourcing to be a long-term constraint [59] Question: What is the expected run rate for SG&A? - Management indicated that SG&A is higher than previous estimates due to global volatility and inflation, but they are consistently looking for optimization opportunities [61] Question: Are there any embedded dates in offtake agreements that could affect customer patience? - Management reassured that there is strong demand for the product and core customers are still engaged in testing commercial scale products [64] Question: What is the latest on the Augusta project? - Management confirmed that the Augusta project is moving forward and integrating learnings from Ironton into the design [71]