Shares of Purecycle Technologies Inc (NASDAQ: PCT) rose by nearly 45 per cent Wednesday following news of the company securing financing from two financial firms. This company has a patented process for recycling one of the world’s most common plastics: polypropylene.
A US$90 million financing arrangement has been secured with Sylebra Capital Management and Samlyn Capital, LLC. Also, PureCycle’s flagship plant in Ohio has demonstrated a significant increase in productivity, thereby increasing investor confidence.
“This investment combined with the progress we are seeing on our production and commercialization efforts at the Ironton Facility should enable us to drive toward our long-term goals,” chief executive Dustin Olson said in a statement.
Olson explained that PureCycle is currently in the midst of transferring from a pre-revenue company to a commercial operation.
“Bringing to market next-generation technology is never easy, but the tangible production progress we are seeing in Ironton is undeniable,” Sylebra Capital’s Chief Information Officer, Dan Gibson, said.
PureCycle uses a seven-step process at its plastic recycling plant. This complex method is described in detail on the company’s website. It was originally developed by Procter & Gamble Co (NYSE: PG) before being licensed to PureCycle for commercialization.
Investment banking firms TD Cowen and Stifel Financial Corp (NYSE: SF) currently give the plastic processing company a Buy rating. In June, PureCycle received FDA approval to use its PureFive recycled plastic resin for food storage applications.
The company also reported significant progress at its Ironton Facility, achieving feed rates over 10,000 pounds per hour and processing more than 200,000 pounds of feedstock in a day. PureCycle aims to produce one million pounds in a week during Q3 and is transitioning to…
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PureCycle sets up another facility in Georgia
In addition to the flagship facility in Ironton, Ohio — PureCycle is constructing a second plant in Augusta, Georgia.
A groundbreaking ceremony for this new plastic recycling complex was held in December. Upon completion, it will be capable of producing 260 million pounds of like-new plastic resin per annum.
Additionally, PureCycle started construction of a similar plant in Belgium this year. “We are excited to bring our Ultra-Pure Recycled (UPR) resin to customers in Europe,” Wiebe Schipper, European operations manager at PureCycle, said in 2023.
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