PureCycle Technologies, Inc. (NASDAQ: PCT) shares are experiencing an upward trajectory today, registering a 1.34% increase to reach $3.90 at the latest check. The surge in PureCycle stock is attributable to a recent communication from the company.
PureCycle (PCT) this week provided an update on the operational status of its flagship purification facility situated in Ironton, Ohio. The facility successfully recommenced operations after a November hiatus aimed at addressing critical reliability issues. Notably, PureCycle demonstrated a commendable recovery post-outage, achieving the processing of half the volume of feed within the initial three days—a feat not accomplished in almost five months preceding the interruption.
The introduction of a screen changer in the final product extruder during this period showcased its efficacy in facilitating continuous pellet production. Operational enhancements were further evident in the increased removal of impurities, specifically co-product one and co-product two, through the purification process.
Despite these accomplishments, a few unrelated mechanical challenges surfaced last week. Predominantly, issues centered around a leaking block valve and a mechanical seal failure. Ensuing the seal failure, the Ironton facility was safely shut down without incurring additional equipment damage. Ongoing maintenance activities are currently in progress, anticipated to conclude in the near term, facilitating PureCycle’s resumption of continuous operations.
In light of these challenges, PureCycle: Ohio LLC has decided to leverage the 90-day cure period specified in the agreement with bondholders. The company determined that it would be unable to meet the operational milestone, set by the bondholders for its Ironton bonds, of producing 4.45 million pounds of pellets within a 30-day period by December 31, 2023.
The dedicated team at PureCycle has been tirelessly working around the clock at the Ironton facility to enhance and optimize pellet production. This effort aligns with the company’s commitment to ensuring reliable operations that adhere to the highest safety and quality standards as it endeavors to bring this pioneering technology to market.