PureCycle entered into a series of transactions with Sylebra Capital Management and Samlyn Capital to raise gross proceeds of $90 million. PureCycle anticipates that the transactions will close on September 13, 2024. The transactions include: An issuance of $50 million of Series A, Preferred Stock with a three-year maturity and an 8% return Common stock sale of 8.5 million shares at a price of $4.69 per share for total net proceeds of $40 million The issuance of warrants to purchase 5 million shares of common stock, each exercisable at a price of $11.50 per share with an expiration of December 1, 2030 The extension of Sylebra Capital’s $200 million line of credit to March 31, 2026. The capital raised is expected to enable PureCycle to continue executing on its plan to bring its world leading purification process to the market. This significant investment by Sylebra Capital Management and Samlyn Capital, LLC in PureCycle underscores the participating investors’ confidence in the company’s technology and leadership position in the emerging recycled polypropylene market. The preferred stock portion of this deal allows the company to raise a significant portion of additional capital without dilution to equity holders. The Company also provided several updates on its flagship purification facility in Ironton, Ohio. The Company completed the installation and commissioning of the modifications to the co-product two removal system. The Company has placed it into service and will continue to optimize and streamline the removal over the coming weeks. This new system, when fully operational, and combined with the Company’s feed-sorting efforts, will allow the Company to remove the CP2 bottleneck from its production constraints. Beginning in early September, the Ironton Facility turned its focus toward production and has been making meaningful progress against the Company’s third quarter goals. The Company is pleased to report that it has already achieved feed rates of over 10,000 pounds per hour and has twice processed more than 200,000 pounds of feedstock in one day. On the commercialization front, the Company continues to make progress with its compounding strategy, customer sampling efforts, initial sales in Q3, and the plan for increased revenues in Q4. The Company has compounded approximately 500,000 pounds to date, with another one million pounds planned for September, and over three million pounds per month planned for the fourth quarter. The Company expects the majority of this material to be sourced into the fiber market following the Company’s early successes with these applications.
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