Why PureCycle Technologies Rocketed Nearly 40% Today
Shares of PureCycle Technologies (NASDAQ: PCT) rallied 37.9% as of 1:00 p.m. ET Wednesday.
The company, which is looking to commercialize its polypropylene recycling technology, received a cash infusion today from investors. While the cash raise will dilute investors somewhat, it appears the funding set aside investor fears as the company nears commercialization of its recycling technology.
Today, PureCycle issued a press release disclosing a $90 million raise from existing private equity partners Sylebra Capital Management and Samlyn Capital, LLC. The $90 million consists of $50 million in preferred stock and $40 million raised in the form of an equity raise at $4.69, which was yesterday's closing stock price. Additionally, PureCycle issued 5 million warrants to its partners that can be converted into stock at $11.50 per share, with an expiration date of Dec. 1, 2030.
Source Fool.com
