Rationalizing on
$PCT after yesterday bloodbath:
1) The timing of the filing was a disaster. It literally couldn't have been worse. They announced it during a week of full-blown market panic, with a massive OpEx expiration on Friday.
2) They may be brilliant plastic nerds, but for the love of God, their communication around corporate finance actions has been amateurish, to put it mildly, every single time. They seem to completely ignore market dynamics, and that's simply not going to work. Trillion-dollar companies pay close attention to the timing of offerings and capital raises, while PCT appears to think it can just wing it. This is something that will need to be addressed sooner rather than later with the right hire.
3) On the positive side, we all knew they only had roughly 3β4 quarters of cash runway left. The new capital raise gives them the flexibility to continue investing in ongoing projects without risking a liquidity crunch.
4) The 215M 2030 notes represented a significant overhang, and they managed to eliminate that burden on reasonably fair terms.
5) This deal puts enormous pressure on 2Q results. I expect the stock to remain pinned in the $8β9 range for a while, but if we don't see a meaningful revenue acceleration soon, it could drop to $5 in the blink of an eye.
@Mike_Taylor1972 @PureCycleTech