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PureCycle Technologies (NASDAQ:PCT) stock rose ~47% on Thursday after the company said it signed an agreement with Formerra to serve as the primary authorized North American distributor of ultra-pure recycled (UPR) polypropylene resin PureFive.
PureCycle’s purification technology removes odor, color and other impurities from polypropylene waste. This leads to an ultra-pure recycled plastic which can be recycled and reused, according to the company.
The resin is expected to be available to Formerra customers as early as Q4 2023.
“This is another key step in executing our global growth strategy,” said PureCycle CEO Dustin Olson. “Our first purification line in Ironton, scheduled to be completed shortly, and the subsequent two lines planned in Augusta, are designed to produce more than 300 million pounds of UPR resin. We will rely on Formerra as a trusted distribution partner to help us reach new markets.”
Q4 Updates:
PureCycle said that after the company’s inability to complete all construction activities by Dec. 1, 2022, the company and Ironton bondholders agreed to a limited waiver to the original indenture agreement which principally adjusts certain operational milestones and transfer of funds for specified purposes.
Total cash invested in the Ironton facility through Dec. 31, 2022, was $280.9M and the company expects another $39M to $45M spend in Q1 FY23.
As of Dec. 31, 2022, PureCycle had total liquidity of $326.1M including $162.5M in cash, cash equivalents and debt securities available for sale, and $163.6M in restricted cash, according to the company.