PureCycle Technologies, Inc.

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Ademi LLP is investigating possible securities fraud claims against PureCycle (NASDAQ: PCT).  The investigation results from inaccurate statements PureCycle may have made regarding its business operations and prospects.

On May 6, Hindenburg Research published a report exposing the troubling history of certain of PureCycle’s executives with publicly traded companies, pointing out that, collectively, these executives have taken “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.”  The report noted that Hindenburg had contacted “multiple former employees of these earlier failed companies, who said PureCycle’s executives based their financial projections on ‘wild ass guessing’, brought companies public far too early, and had deceived investors.”

More troubling, the report stated that “multiple competitors and industry experts explained that PureCycle faces steep competition for high quality feedstock, and called the company’s financial projections into question.”  In addition, the report cited a “30-year expert on polymers, with a background in advanced plastics recycling [who] . . . told us the company’s patent is ‘indirect’, ‘vague’ and a ‘regurgitation’ of prior art [and also] . . . referred to the company’s flammable pressurized process as a ‘bomb’ and warned about the company forging ahead to commercial scale despite still having issues at a lab scale.