An investigation on behalf of investors of PureCycle Technologies, Inc. (NASDAQ: PCT) shares over potential securities laws violations by PureCycle Technologies, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of PureCycle Technologies, Inc. (NASDAQ: PCT) concerning whether a series of statements by PureCycle Technologies, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Orlando, FL based PureCycle Technologies LLC produces recycled polypropylene.
On May 6, 2021, Hindenburg Research issued a report concerning PureCycle Technologies, Inc. wherein Hindenburg Research detailed a series of alarming red flags about PureCycle. Specifically, the report stated, "PureCycle is the latest zero-revenue, ESG-themed SPAC taken public with a bold story about how it will someday revolutionize the plastics recycling industry." Further stating, "The company's insiders and SPAC sponsors do not seem inclined to wait to see how its claims will work out: they've collectively positioned themselves to clear ~$90 million in cash and tradable shares before the company generates a single dime in revenue." Additionally, the report stated that "PureCycle's Chairman/CEO and other associated executives collectively took 6 companies public prior to PureCycle. All have failed, resulting in 2 bankruptcies, 3 delistings, and 1 acquisition after a ~95% decline. Over $760 million in public shareholder capital was incinerated in the process."
Shares of PureCycle Technologies, Inc. (NASDAQ: PCT) declined from $28.25 per share on April 27, 2021, to as low as $12.54 per share on May 10, 2021.