PureCycle Technologies, an Orlando-based advanced recycling company revolutionizing plastic waste, announced a corporate update and financial results for the fourth quarter ending December 31, 2021. This includes entering into subscription agreements with a select group of existing stockholders including among others, Sylebra Capital and Samlyn Capital along with a new investor, SK geo centric, for a private placement of common stock and warrants. Upon closing of the private placement, PureCycle will receive net proceeds of approximately $250 million.
“PureCycle remains intently focused on executing against its strategic growth plan and advancing the sustainable plastic revolution through our unique purification process,” said Mike Otworth, PureCycle’s Chairman and Chief Executive Officer. “That growth plan is now further supported by the additional $250 million investment from our long-term shareholders and a new investor. This transaction underscores the support from our shareholder base and highlights a vote of confidence in our technology.”
The private equity capital raise to support the build out of the Augusta, Georgia multi-line manufacturing complex and other strategic and general corporate purposes. The transaction expected to close on March 17th, subject to the satisfaction of closing conditions.
“PureCycle’s successful announcement of our oversubscribed private placement financing marks an integral step for our company and highlights trust in our ability to execute,” said Larry Somma, PureCycle’s Chief Financial Officer. “It is also a testament to the support we have from several of our long-term shareholders and a new investor. While we have an ambitious growth objective, this capital will provide sufficient capital to fund our business plan which includes building the first four purification lines in Augusta, the supporting feedstock pre-processing (PreP) facilities, our equity investment for the joint venture with SK geo centric and funding of general corporate purposes. This capital raise is a key element for the project debt process which is underway. Any news related to the project debt will be provided to the market at a future time. Operationally, we expect to break ground in Augusta on March 22, 2022, and look forward to providing further details during the corporate update call.”
“The welcome addition of SK geo centric to the group of investors demonstrates another strong commitment to the PureCycle technology and business plan,” added Na Kyung-soo, CEO, SK geo centric. “SK geo centric and PureCycle engaged across multiple face to face meetings to understand the key technical details as well as chart a path into South Korea and broader Asia. Our company has a strategic goal to increase the usage of recycle material into our core product platform that aligns perfectly with PureCycle’s core mission. Our equity investment into the PureCycle is the first step toward a long-term strategic partnership.”
