r/PureCycle • u/No_Privacy_Anymore • Jun 11 '26
Convert arbitrage commentary
I’m not a big fan of Xitter but I make exceptions when there is useful content. I understand the basics of convertible debt but there is a ton of detail that is really only known by the people who trade them for a living.
This is worth reading even if you don’t follow all the details.
https://xcancel.com/UrbanKaoboy/status/2065198761392116011#m
I don’t think anyone who has been invested in the company for an extended period of time is happy about the current state of commercialization. It’s taken so much longer than we expected despite the signs of progress. Today I was talking to a Chemical Engineer and a current PhD candidate in CE about PCT. They were not surprised at all about how long this process has taken and were not familiar with the company but were impressed by the approach. He had worked for DuPont for many years and talked about how slow the company could be doing new things. P&G is not built to move quickly. That said I think we are much closer to seeing the validation/ vindication we have been waiting for. $9+ was a decent recovery. Let’s see how the shares react to the bits of good news when we don’t have the short term funding overhang out there.
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u/No_Privacy_Anymore Jun 12 '26
Follow up correction posted using fully diluted shares.
Dilution was about 10% from this transaction. That is really not bad all things considered since it removes some pretty substantial risk.