We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. PureCycle Technologies Inc. (NASDAQ:PCT) is one of the best performers on Tuesday. PureCycle snapped a three-day losing streak on Tuesday, jumping 12.22 percent to close at $14.78, as investors snapped up shares amid its expected expansion into the European Union (EU). This followed the receipt of its Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Compliance, which certifies that PureCycle Tech ...

Growth & Capacity Expansion - The company aims to reach 1 billion pounds of installed polypropylene recycling capacity by the end of 2029[6,9] - Thailand plant is expected to be operational in Q3 2027 with 130 million pounds capacity[9,11] - Antwerp plant is expected to be operational in Q3 2028 with 130 million pounds capacity[9,11] - Augusta Gen 2 Line 1 is expected to have 300 million+ pounds capacity and be operational in 2029[11] - A second Gen 2 line is planned for an unconfirmed location, also with 300 million+ pounds capacity, expected in 2029[11] Commercial Progress - A commercial agreement is in place with Emerald Carpets for approximately 5 million pounds of fiber sales[6,20] - The company is engaged in 17 post-trial negotiations representing approximately 80 million pounds of potential annual production volume[6] - The company has a strong pipeline with 26 active trials and 70 pending trials[6] Operational Achievements - Ironton facility achieved 87% onstream time in April/May and produced pellets for 65 consecutive days in Q2[6] - A rate test was successfully completed at 14,000 lbs/hr on August 1, nearing nameplate capacity[6] - The company is initiating a project to add approximately 100 million pounds of annual compounding capacity to Ironton[6,26] Financial Update - Approximately $300 million was raised from a perpetual preferred security in June[6] - Unrestricted cash increased from $22.5 million on March 31, 2025, to $284.1 million on June 30, 2025, a change of $261.6 million[30]

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]