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Photo Credit: PureCycle

Advanced recycling company has entered  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 (the “Offering”). Upon closing of the private placement, PureCycle will receive net proceeds of approximately $250 million. Expected to close on March 17, 2022, this investment will support the build out of the company’s multi-line manufacturing complex in Augusta, Ga., and other strategic and general corporate purposes. Here’s an update on the company’s key endeavors:

 â–ª  Plant 1,  the first manufacturing plant in Ironton, Ohio, remains on schedule to complete construction in the fourth quarter of 2022

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 â–ª  Plant 2’s first multi-line purification complex in Augusta, Georgia, breaks ground with initial site work construction scheduled for March 22, 2022. The multi-line purification complex is designed to support up to 8 lines and produce up to 1.04 billion lb/yr of ultra-pure recycled (UPR)        PP resin.

 â–ª PureCycle signed letters of intent (LOI) for 60 million/lbs of new feedstock from untapped waste streams that are currently landfilled or incinerated.

The Central Florida PreP facility, which is designed to provide feedstock to Augusta, remains on schedule and is expected to be operational in the third quarter of 2022. This facility will have the capacity to process 75 million lb/yr of  PP feedstock with a scalable capacity of 150 million lb/yr.

Conversations with Titus in California are progressing for a second regional PreP facility and site selection for an additional U.S. PreP facility in the Northeast is underway.

 â–ª  PureCycle’s chief manufacturing officer, Dustin Olson, has been elevated to chief operating officer

PureCycle continues to see strong demand across the packaging and consumer goods segments, and continued market acceptance of the company’s feedstock+ pricing model. PureCycle added 164 million lbs to the pipeline in the fourth quarter and has a total sales pipeline of 822 million lbs.

Said Mike Otworth, PureCycle’s Chairman and CEO, “PureCycle remains intently focused on executing against its strategic growth plan and advancing the sustainable plastic revolution through our unique purification process. 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.”

Said Na Kyung-soo, CEO, of new investor SK geo centric, “The welcome addition of SK geo centric to the group of investors demonstrates another strong commitment to the PureCycle technology and ´óÏó´«Ã½ plan. 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.”