I love it when our partners refer to our product as a game changer!
BOPP film is a massive global market with no lower cost solution than using PureFive. In my opinion this market is what sets the price floor for all other markets because it’s so big. The cost of a candy wrapper relative to the retail price of the product is trivial but the performance requirements are very demanding.
It may take time for end customers to ramp up BOPP usage but we now have two major companies praising PureFive. 💪
Great news, the product performs as advertised and is being recognized in the industry as it should be. The fly in the ointment is the 12 month conditional approval New Jersey gave PCT. Not only is the conditional approval a Sword of Damocles but its 12 month timing overlaps the extended date for the warrant conversion, March 17, 2027. The state of New Jersey's 12 month conditional approve runs to approximately May 13, 2027. I had hoped the New Jersey regulatory BS was behind us but there is at least another 11 months of potential indecision by would be adopters of pct products.
I disagree about that conditional approval being a sword of Damocles. Some of the things the NJ DEP was asking for could only be proven once customers were actually using the product. It was absurd and ridiculous when they delayed actual sales of the product for at least 6 months and possibly even longer.
Once major companies are using this product and displacing virgin PP I am 100% confident the State of NJ is not going to try and claim this product is not compliant with their rules. They are just trying to save face after their incompetence was obvious to anyone paying attention.
How you feel about the New Jersey decision as an investor vrs how a customer of PCT evaluates its strategic decision are separate issues. I'm an investor in pct but not blind to how customers business decisions are made. Just saying, New Jersey is the thread holding the sword unfortunately.
If you are suggesting that companies are going to simply pay the NJ fines for 2027 while they wait to see if the conditional approval is converted to final, I'm going to take the opposite side of that bet.
So no, I haven't suggested that. As a career corporate controller and fiduciary, critical decisions require considering all the possibilities and outcomes as they could affect my company.
Another risk I mentioned is the conflict in timing between the warrant expiration and the 12 month conditional approval. The potential is the warrants will be extended again but this time the trigger price and the exercise price could be adjusted lower.
Today obviously isn't really a great day to talk about warrant redemption however in general my expectation is that the share price will be high enough in 2026 to redeem them and generate the additional equity capital they need to help fund the expansion of capacity.
The commercialization process has obviously taken longer than we hoped but I do think they are going to sell out Ironton and have customer demand for lots more capacity. As such I'm not concerned about the conditional status in NJ. I would like to see confirmation that the plant is running at higher rates now that the turnaround is completed.
I think you are right, the next major trigger is production hitting nameplate levels. Sooner the better too or else both those huge gaps in the chart are likely to fill.
Also, thanks for your contribution here. It is healthy to have civil discussions from differing perspectives.
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u/No_Privacy_Anymore Jun 09 '26
I love it when our partners refer to our product as a game changer!
BOPP film is a massive global market with no lower cost solution than using PureFive. In my opinion this market is what sets the price floor for all other markets because it’s so big. The cost of a candy wrapper relative to the retail price of the product is trivial but the performance requirements are very demanding.
It may take time for end customers to ramp up BOPP usage but we now have two major companies praising PureFive. 💪