PureCycle (NASDAQ: PCT) revises Augusta plant timeline, pays $500k
Rhea-AI Filing Summary
PureCycle Technologies, Inc. entered into a Construction Progress Agreement with the Development Authority of Augusta, Georgia to update milestones for its second-generation polypropylene recycling facility in Augusta. The company will make aggregate cash payments of $500,000 to the authority in two equal installments of $250,000, with the first payment expected by January 9, 2026.
PureCycle also waived its right to a “Phase II” option that would have allowed leasing about 50 additional acres beyond the original Phase I site. The Phase I site was designed for eight first-generation purification lines, each capable of producing up to 130 million pounds of recycled polypropylene pellets, and is described as at least equally sufficient for second-generation lines anticipated to produce 300 million pounds. The revised agreement sets a new construction timeline with milestone targets through startup and full production, including a requirement to start construction no later than March 2028, and it provides penalties and termination rights in favor of the authority if key milestones are missed.
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Insights
PureCycle formalizes new Augusta plant timeline with modest cash outlay.
The agreement clarifies the development path for PureCycle’s Augusta, Georgia second-generation polypropylene recycling facility. The company commits to aggregate payments of $500,000 to the local development authority in two $250,000 installments, a relatively small cash requirement in the context of large-scale industrial projects. The filing emphasizes that the existing Phase I site is expected to support higher-capacity second-generation purification lines, anticipated to produce 300 million pounds of recycled polypropylene pellets.
By waiving the Phase II option for approximately 50 additional acres, PureCycle narrows its footprint but signals that its current site is sufficient for planned technology. The revised timeline includes milestone targets through commissioning, startup, and full production, with construction required to begin no later than March 2028. The agreement also introduces penalties and termination rights for the development authority if PureCycle fails to meet certain pre-construction and construction milestones, which could increase execution pressure if delays occur.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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Item 8.01 Other Events.
On December 29, 2025, PureCycle Technologies, Inc. (the “Company”) entered into a Construction Progress Agreement (“CPA”) with the Development Authority of Augusta, Georgia (“AEDA”) to revise and supplement the construction milestones and related obligations contained in the Economic Development Agreement associated with the Company’s second-generation polypropylene recycling facility in Augusta, Georgia.
Under the CPA, the Company agreed to make aggregate cash payments of $500,000 to AEDA in two equal installments of $250,000, the first of which is expected to be paid by January 9, 2026. Additionally, the Company waived its right to exercise the “Phase II” option contemplated under the original Economic Development Agreement, which would have permitted the lease of an additional approximately 50 acres beyond the Phase I site. The Phase I site was originally contemplated to ensure sufficient acreage for eight first generation purification lines each capable of producing up to 130 million pounds of recycled polypropylene pellets. The Phase I site will be at least equally sufficient for the Company’s second-generation purification lines that are currently anticipated to have the capability to produce 300 million pounds of recycled polypropylene pellets. Further, the CPA establishes a revised construction timeline with milestone targets extending through commissioning, startup, and full production, including, among others, start of construction no later than March 2028. The CPA provides for certain penalties and termination rights in favor of the AEDA should the Company fail to meet certain pre-construction and construction milestones.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Set forth below is a list of Exhibits included as part of this Current Report.
Exhibit Number |
Description of Exhibit |
104 |
The cover page from this Current Report on Form 8-K, formatted as Inline XBRL |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PureCycle Technologies, Inc. |
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Date: |
January 13, 2025 |
By: |
/s/ Jaime Vasquez |
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Jaime Vasquez Chief Financial Officer |