SAN DIEGO & ORLANDO, Fla.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating PureCycle Technologies, Inc. (Nasdaq: PCT) to determine whether certain PureCycle officers and directors violated the Securities Exchange Act of 1934 and breached their fiduciary duties to the Company. PureCycle is a recycling company and its technology separates color, odor, and contaminants from plastic waste feedstock to transform it into ultra-pure recycled polypropylene.
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PureCycle Technologies, Inc. (PCT) Accused of Misstating its Purported Financial Condition and Prospects
According to a class action filed on behalf of purchases of PureCycle, on November 16, 2020, PureCycle announced it would list its common stock on NASDAQ through a reverse merger with the Roth CH Acquisition 1 Co. At that time, PureCycle claimed it was modeling for its revenue to hit $8 million in 2022 as its first plant came on line. The Company expected revenues to ramp up to $224 million in 2023 with its first five plants and $800 million in 2024. PureCycle also touted the strength of its technology, intellectual property, and management team. Shareholders approved the merger on March 16, 2021.
These statements, however, may have been false and misleading. Before the market opened on May 6, 2021, Hindenburg Research published a report entitled, "PureCycle: The Latest Zero-Revenue ESG SPAC Charade, Sponsored by The Worst of Wall Street." The Report revealed that the Company's insiders and SPAC sponsors positioned themselves to clear approximately $90 million in case and tradable shares before the Company generates any revenue and that PureCycle's Chairman and CEO, and other associated executives, collectively took six companies public prior to PureCycle, and each failed, among other things. On this news, the Company's share price fell more than 40%, or approximately $10 per share, on May 6, 2021.
PureCycle Technologies, Inc. (PCT) shareholders have legal options. If you own shares of PureCycle Technologies, Inc. contact us to learn more about your rights.
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