Why PureCycle Technologies Rallied Today

shares Purecycle Technologies (Nasdaq: PCT) Pay 24.2 % today from 11:49 pm East time.

Purecycle is a young company established 10 years ago, which has a technique that can recycle polypropylene waste and convert it into a pure plastic resin, which can then turn into plastic bodies for all types of final use.

Today, the company announced a significant investment from some prominent investors, which led to a significant increase in shares.

Today, Purecycle announced that it raised $ 300 million in the form of a convertible favorite shares, which pays a 7 % voucher to its owners and turned into a 30 % joint property rights to the average price of 10 days before yesterday. Among the investors in the favorite stocks are Sylebra Capital Management and Samlyn Capital, LLC, which participated in a previous financing round last September. In addition, other hedge funds and family offices, including the Stanley Druckenmiller’s Duquesne family office, will participate in the current financing round.

In conjunction with the raising of the capital, Purecycle also announced the expansion of its second American facility in Ugusta, as well as the construction of two new recycling manufacturers in Thailand and Anwirb. Funding will go to building these new facilities, which will come online over the next few years. Once it is completely built, Purecycle believes that it will be able to generate $ 600 million of profits before benefits, taxes, depreciation, consumption (profits before interest, taxes, depreciation and firefighting) annually by 2030.

Investors offer almost the shares offer to the point of transferring the favorite stocks today, most likely are encouraged by strong expansion plans, financial goals and participation from a famous investor.

After operating today, the company has the maximum market by about $ 2.6 billion, although this will increase by another $ 300 million if the favorite shares turn into shared shares.

Certainly, the value of the institution is about 5 times the EBITDA of 2030 is still cheap to pay the price of Purecycle, but remember that the profit numbers before benefits, taxes, depreciation and consumption lead to some real costs, especially in intensive capital companies, and there is also the time value of money to consider them, where future profit expectations must be deducted for a period of five good years.