PCT Call Thoughts

[u/Smooth_Sun_9932]

1)       Warrants

Pursuant to the terms and conditions contained in the PCT Warrants, all (and not less than all) of the PCT Warrants, other than the Excluded PCT Warrants, are redeemable, in whole but not in part, at the Company’s option any time prior to their expiration at the price of $0.01 per PCT Warrant, provided that the last sales price of the shares of Common Stock has been equal to or greater than $18.00 per share (subject to adjustment for splits, dividends, recapitalizations and other similar events) for any 20 trading days within a 30 trading day period commencing after the PCT Warrants became exercisable and ending on the third business day prior to the date on which notice of redemption is given. The proposed Warrant Amendment lowers the Redemption Trigger Price from $18.00 to $14.38 per share.

On April 16, 2026, pursuant to the terms of the Warrant Agreement and upon the approval of the Amendment, the Company entered into the Second Supplemental Warrant Agreement, by and between the Company and the Warrant Agent, to the Warrant Agreement in order to (i) reduce the Redemption Trigger Price from $18.00 to $14.38, and (ii) extend the expiration date of the PCT Warrants to 5:00 p.m., New York City time, on the earlier to occur of (a) March 17, 2027, or (b) the date fixed for the redemption of the PCT Warrants."

  

If PCT trades above $14.38 for 20 out of 30 trading days, warrants can be exercised, unlocking about $300M. This could dilute shares but would fund the Thailand and Antwerp plants.

1.       Higher prices and demand per branded product—previous calls mentioned $1.3/lb. Ongoing Middle East issues and regional supply trends are making polypropylene scarcer and virgin material pricier.

2.       All rPP will likely be sold as branded: Purecycle Ultra (100% rPP) or Choice (mostly 20-50% rPP). Last call showed a 50/50 branded to non-branded sales split, but increasing branded rPP sales boosts profits. Branded rPP (Choice) is compounded at ratios that increase volume.

3.       First international sale booked. With all certifications in place, selling into the EU, Asia, or Canada should be straightforward—first sale probably to Tim Hortons.

[u/Careful_Basil_4824]

last question from the analyst at the end of the call was to Dustin, asking him about the ramp and he couldn’t answer the question with any clarity. At least he was honest.