PureCycle Announces Financing Transaction and Ironton Production Update

Ironton Facility Reaches Feed Rate of 10,000 Pounds Per Hour; Processes Over 200,000 Pounds in One Day

IRONTON, OH / ACCESSWIRE / September 11, 2024 / PureCycle Technologies, Inc. (Nasdaq:PCT), today, entered into a series of transactions with Sylebra Capital Management and Samlyn Capital, LLC 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.

PureCycle Chief Executive Officer Dustin Olson said, "This capital not only supports our existing operations, but will also help fund additional activities associated with our Augusta project. 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."

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 (CP2) 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.