PureCycle Technologies, Inc.

Thank you for standing by and welcome to the PureCycle Technologies first quarter 2020 new corporate update conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. As a reminder, today's conference call is being recorded. I will now turn the conference over to your host, Mr. Larry Soma, Chief Financial Officer, PureCycle Technologies. Sir, you may begin.

Thank you. Welcome to PureCycle Technologies' first quarter earnings update conference call. I am Larry Soma, Chief Financial Officer. And joining me today are Chairman and Chief Executive Officer Mike Outworth and our Chief Operating Officer and Chief Manufacturing Officer Dustin Olson. This morning we will be highlighting our corporate developments for Q1. The presentation we will be going through on the call can also be found on the IR page of our website, purecycle.com. Many of the statements made today will be forward-looking and are based on management's beliefs and assumptions and information currently available to management at this time. These statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions for forward-looking statements that can be found at the end of our first quarter 2022 corporate update press release and in our filed quarterly report on Form 10-Q filed this morning, as well as in our other reports on file with the SEC that provide further detail about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated and, except as required by law, we undertake no obligation to update any forward-looking statements. Our remarks today may also include preliminary non-GAAP estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between PCT's actual results and the preliminary financial data set forth herein may be material. You're welcome to follow along with our slide deck, or if joining us by phone, you can access it at any time on PureCycle.com. We are excited to share updates from the previous quarter with you, and I will now turn it over to Mike Otworth, PureCycle Chairman and Chief Executive Officer.

Thanks, Larry. Good morning. This is an exciting time for PureCycle as we pursue our mission of revolutionizing plastic waste into a renewable resource. We're facing a critical moment as the plastic pollution crisis plays out on the world stage. Now more than ever, we believe PureCycle offers a solution for companies looking to be genuine and deliberate when it comes to sustainability. We are making strong operational progress. Since our last update, the first four of 26 recycling modules arrived in Ironton this past week, and we expect a larger shipment to arrive over the summer. We remain on track and expect to produce pure-cycled plastic from our commercial facility in Q4 2022. We broke ground on PureCycle's Augusta facility, expanding our footprint into the southeast. We're currently on track for a startup in Q4 2023. In Q1, we secured feedstock LOIs that are expected to yield approximately 215 million pounds of recovered polypropylene to supply PureCycle's Augusta Purification Facility. The offtake from the first two lines in Augusta is 70% allocated through multi-year commitments. We continue to expand our commercial agreement footprint across converters and compounders with two new signed sales agreements and non-CPG channels. Our existing partnerships continue to generate exciting results, and as an example, we achieved a major testing milestone with Aptar for hinge closures that yield performances on par with non-recycled resin. The PureCycle PureZero program continues to see momentum since launching, with our focus now expanded to include partnering with professional and collegiate sports leagues. We anticipate exciting announcements on new partners in coming months, And I'm pleased to report that we ended Q1 2022 with $610 million in total cash and investments. Moving to slide four, our goal is to produce 1 million pounds of our ultra-pure recycled resin by 2025, and we are aggressively working toward that goal. As we previously reported, we're thrilled that PureCycle's Augusta Purification Facility can support up to eight purification lines. which collectively are designed to produce approximately 1 billion pounds of pure cycled plastic annually. This facility can be a significant game changer when it comes to achieving this major milestone. Further, our relationship with SK Geocentric continues to advance toward our goal of a completed facility in South Korea by Q4 2024, and we're progressing toward a joint venture agreement with Mitsui for a facility in Japan. Moving to slide 5. As PureCycle continues to grow, we work towards scaling our operations commercially. Our goal has been to add top-tier talent across our business segment. We have worked hard to ensure different experiences within our industry are represented, and we're thrilled that two exceptional industry experts have joined our board of directors. Stephen Valk, former president of Waste Connections, Inc., and Alan Jacoby, chief strategy officer and senior vice president of corporate development for Milliken & Company, have joined PureCycle's board in March. These two independent directors are both proven and successful leaders who combined bring more than 50 years of relevant experience. Both Steve and Alan will help PureCycle advance our mission and business objectives, and I'm confident they will serve us well. We have assembled the best talent here at PureCycle, and to achieve our goals, we wanted to ensure everyone is in the right place for success. To that end, we've realigned some of our teams to help us better deliver our mission to revolutionize plastic waste into a renewable resource. We most recently announced that Dustin Olson was appointed to the Chief Operating Officer position, in addition to his Chief Manufacturing Officer responsibilities. As such, changes have been made internally to his current organization that emphasize the importance of Ironton, Augusta, and our feed prep strategy. Our CFO, Larry Soma, has also expanded the finance team to bolster our financial operations, bringing on top-tier talent to round out his team to include a Vice President of Finance, Senior Director for Revenue, and Director of Analytics. With that, I'd like to turn it over to our Chief Operating Officer, Dustin Olson, to discuss our manufacturing, commercial, and feedstock updates.