PureCycle Technologies, Inc. (PCT) Made Misstatements Regarding its Purported Financial Condition and Prospects
On November 16, 2020, PureCycle announced it would list its common stock on NASDAQ through a reverse merger with the ROCH SPAC. 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, were 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.
If you purchased shares of PureCycle Therapeutics, Inc. (PCT) and/or Roth CH Acquisition I Co. (ROCH) between November 16, 2020 and May 5, 2021, or were entitled to participate in the March 12, 2021 shareholder vote on the merger with PureCycle, you have until July 12, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.