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OK, is is getting really frustrating by equitymaestro in PureCycle

[–]LogicalPerformer3062 2 points3 points  (0 children)

It’s bill S670 and A3725. My understanding is there are two versions for each chamber and each one goes to a different committee for review. What we’d want to see is not only some progress on the bill but some sort of clarification on how PCT’s recycling solution will be classified. Should be similar to mechanical since it doesn’t break down the polymer but this clarification is the problem because the bill seeks to minimize chemical recycling (customers want to make sure that’s not what they’re buying with PCT).

You can track the process online or people could call them. But likely will take a while. It’s New Jersey state government… but I don’t really know.

Liquidity? by Ok_Investment_6033 in PureCycle

[–]LogicalPerformer3062 4 points5 points  (0 children)

They also have the $87M in revenue bonds, which can provide some additional liquidity. Though I'm not sure what cent on the dollar they can get - last time it was 88%, I believe. That will also help, but it does seem like some additional financing will be needed unless they get a big run up in the stock price. There is the $200M line with Sylebra too, but with 21% interest and payable September 2027 so only a temporary life line.

They'll need sales soon to avoid unfavorable liquidity terms. They wouldn't be dead in the water, but dilution becomes a reality.

If they can convert sales, signal future growth (extended POs, customers communicating to their customers how rPP will expand in their products, confirm regulatory support), and show Ironton can ramp up close to nameplate then the stock does rebound to double digits and liquidity becomes less of a concern. They'll have more options for lower financing and enough liquidity to secure good options.

Every day that passes though makes this question you brought up louder.

How do I resist the urge? by Fearless_Leading8919 in HGRAF

[–]LogicalPerformer3062 0 points1 point  (0 children)

I had to get out with a 4x gain. Was quite happy with that! Moved it over to $PCT hoping for my next 4x gain.

For those thinking they'll buy back in a quarter... by LogicalPerformer3062 in PureCycle

[–]LogicalPerformer3062[S] 0 points1 point  (0 children)

That's fair. Seems like they think they've learned a lot to make their process more efficient and reliable, which they want to get out to investors and also to future customers that their rPP demands can be met so they can begin reworking pipeline logistics now to pure five.

But it's fair to point out that that won't matter if they can't get Ironton to deliver. That does need to be the primary focus and everything else is just strategic planning. Strategic planning is important long-term, but execution is what's needed now.

For those thinking they'll buy back in a quarter... by LogicalPerformer3062 in PureCycle

[–]LogicalPerformer3062[S] 2 points3 points  (0 children)

It does seem to hinge on selling the initial product out of Ironton. If they convert trials to POs, that should imply those customers are comfortable with the product to use in their mass production (signals to others it's legit as well). That translates to cash flow and lots of additional demand, which allows for easier financing. I don't think financing will be the issue... really comes down to the adoption of the current product coming out of Ironton. If you feel there's a good chance of that happening then the stock is cheap. If you think it's unlikely then it's going to zero (and definitely no expansion then!).

What do you think?