A federal investigation into comments made by PureCycle Technologies Inc. CEO Mike Otworth has concluded "without any further action at this time," according to the plastics recycler.
PureCycle, which is getting close to commissioning a solvent-based polypropylene recycling facility in Ironton, Ohio, said April 26 the company was told by the U.S. Securities and Exchange Commission that a previously disclosed "nonpublic fact-finding investigation" was complete.
Last November, PureCycle revealed the SEC investigation regarding statements Otworth made about the company's technology, financial projections and business plans.
"The investigation pertains to, among other things, statements made in connection with PCT's technology, financial projections, key supply agreements and management," the company said in November when disclosing the investigation in an SEC filing.
PureCycle, at the time, said Otworth intended to cooperate with the SEC, which had issued a subpoena to him in September.
"It is important to note that the fact-finding nature of the investigation does not infer any conclusions that any violations have occurred," then-Chief Financial Officer Michael Dee said at the time. Dee left the company in November 2021, according to his LinkedIn profile. Lawrence Somma is the current CFO.
The company, which has also started construction on a second facility in Augusta, Ga., is licensing technology developed by Procter & Gamble Co. that purifies used polypropylene into virgin-like resin.
News of the investigation last fall came after PureCycle also faced questions from Hindenburg Research, which shorted the company's stock, about the firm's financial projections and technology. PureCycle pushed back against Hindenburg, pointing out that the firm would benefit if the company's share price fell. PureCycle's shares closed at $7.90 on April 27 and have traded in a range of $4.94 to $28.25 over 52 weeks, according to Nasdaq.
Otworth was not available for additional comment April 28, according to Anna Farrar, global communications lead for PureCycle. But she did issue a short statement beyond what the company revealed in its SEC filing.
"We are pleased that the SEC has concluded their investigation without further action at this time. PureCycle will remain focused on our goals," Farrar said in an email.