Thieler Law Corp advises investors with losses exceeding $100,000 of the  July 12, 2021lead plaintiff deadline in a class action lawsuit filed against PureCycle Technologies, Inc. (NASDAQ: PCT) (PureCycle Technologies, Inc. or “the Company”). The suit is pending in the U.S. District Court for the Middle District of Florida and investors, who purchased PureCycle Technologies, Inc. (NASDAQ: PCT) securities between November 16, 2020 and May 5, 2021, have until  July 12, 2021 to move for lead plaintiff. You do not need to move for lead plaintiff to be a member of the Class.

If you purchased PureCycle Technologies, Inc. securities during the Class Period, and have losses over $100,000, you may contact Thieler Law Corp by calling at (619) 377 - 4324 or emailing mail@thielerlaw.com . No class has been certified in this case, and if your losses are less than $100,000 you are still a member of the class.

Through November 2020, PureCycle’s predecessor, ROCH, was a publicly traded special purpose acquisition company (“SPAC”) formed in 2019 for the express purpose of effecting a merger, stock exchange, acquisition, reorganization, or similar business combination with one or more businesses. As a SPAC in search of a business to acquire, ROCH had no ongoing business operations.

Founded in April 2015, PureCycle provides recycling services. The Company is developing a plastic purification recycling technology originally developed and patented by The Procter & Gamble Company (“P&G”). The Company claims its process recycles waste polypropylene into resin with “near-virgin” characteristics. The Company calls its resin ultra-pure recycled polypropylene (“UPRP”), and states that it can take used plastic feedstock and remove color, odor, and other contaminants, creating UPRP that has nearly identical properties and applicability for reuse as virgin polypropylene. Through its global license with P&G, the Company claims to have the only patented, solvent-based purification recycling technology available for this process. If the technology works, a royalty-based license is to be paid by PureCycle to P&G on a semi-annual basis.

At the start of the Class Period, PureCycle was building its first commercial scale plant in Ironton, Ohio. Production was expected to start there in late 2022, with 2023 listed as the full capacity date, and the Company stated that it planned to have five plants operational by 2023. PureCycle had just recently launched a $300 million bond and debt offering that it said would help finance the Company’s first production plant in Ohio.

The Class Period starts with the November 16, 2020 announcement that PureCycle would list its common stock on the NASDAQ through a reverse merger with the ROCH SPAC.

Before the stock market opened on May 6, 2021, stock research firm Hindenburg Research published a detailed report (“Report”), supported by multiple former employees and industry experts, detailing that the management team bringing PureCycle public had: (a) previously brought six other businesses public only to have each implode thereafter, “resulting in 2 bankruptcies, 3 delistings, and 1 acquisition after a ~95% decline[,]” with “[o]ver $760 million in public shareholder capital [being] incinerated in the process”; (b) “based their financial projections” in those other failed companies on “‘wild ass guessing,’ [bringing] companies public far too early, and [having] deceived investors”; and (c) only brought PureCycle public in order to permit that same spurious management team to “collectively position[] themselves to clear ~$90 million in cash and tradable shares before the company generates a single dime in revenue.” The Report cited industry experts who explained that despite the Company’s rosy projections, “PureCycle faces steep competition for high quality feedstock, and called the company’s financial projections into question.” The Report included the account of a “30-year expert on polymers, with a background in advanced plastics recycling” who stated that PureCycle’s “patent is ‘indirect,’ ‘vague’ and ‘regurgitation’ of prior art” and “referred to the company’s flammable pressurized process as a ‘bomb’ and warned about the company foraging ahead to commercial scale despite still having issues at a lab scale.” The Report concludes that “PureCycle represents the worst qualities of the SPAC boom; another quintessential example of how executives and SPAC sponsors enrich themselves while hoisting unproven technology and ridiculous financial projections onto the public markets, leaving retail investors to face the ultimate consequences.”

In response to this news, the price of PureCycle common stock price declined by more than 40%, or approximately $10 per share, on May 5, 2020, on very unusually high trading volume of nearly 11 million shares, or more than 16 times the average volume over the preceding ten trading days.

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the management team bringing PureCycle public had previously brought six other failed business public only to have each implode thereafter; (2) the management team bringing PureCycle public had characterized rank speculation as financial projections to investors in the past; (3) the primary motivation of the management team bringing PureCycle public was to complete any transaction, good or bad, to obtain tens of millions of dollars in cash and tradable shares; (4) PureCycle faces higher competition for high quality feedstock than it has led investors to believe, materially undermining the management team’s financial projections; (5) PureCycle’s patent is nowhere as cogent or valuable as it has led investors to believe, and the technology underlying its business operations is unproven and presents serious issues even at lab scale; (6) in reality, PureCycle’s flammable pressurized process is not yet functional, especially at scale, and is dangerous; (7) PureCycle purports to be advancing to commercial production scale despite still having operational issues at a lab scale; and (8) as a result, defendants’ positive statements during the Class Period about PureCycle’s business performance, financial and operational metrics, and financial prospects were false and misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.

If you were negatively impacted by your investment in PureCycle Technologies, Inc. (NASDAQ: PCT)  securities between November 16, 2020 and May 5, 2021and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.

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