PureCycle Technologies (PCT) Registration Filing summary

Company overview and business model

• Commercializes patented purification recycling technology licensed globally from P&G to convert waste polypropylene into ultra-pure recycled resin with near-virgin properties.

• First commercial-scale facility in Ironton, Ohio, certified mechanically complete in April 2023, with expected capacity of 107 million pounds/year when fully operational; commissioning underway.

• Plans to build additional facilities in Augusta, Georgia (multi-line model) and Antwerp, Belgium, with global expansion dependent on project financing.

• Technology validated by third parties and strategic partners, with favorable comparisons to virgin polypropylene in key industry benchmarks.

• Secured long-term offtake and feedstock supply agreements with multinational partners, supported by operational Feedstock Evaluation Unit since July 2019.

Financial performance and metrics

• As of December 31, 2023, reported $340.4 million in gross U.S. federal net operating loss carryforwards, $8.7 million in state NOLs, and $26.2 million in R&D tax credit carryforwards.

• Ability to utilize NOLs may be limited by ownership changes resulting from equity financings and new investments.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by selling stockholders; will receive up to $62.9 million if all Series C and RTI Warrants are exercised for cash.

• Proceeds from warrant exercises to be used for general corporate purposes, including acquisitions, strategic investments, or debt repayment.