Pyrum links decline in share-price to US investors

Dillingen, Germany – Pyrum Innovation AG has attributed an ongoing decline in the price of its shares to market sentiment among US investors, who represent a substantial portion of its stakeholders.

In an investors update on 10 Sept, CEO of the German end-of-life tire (ELT) pyrolysis company Pascal Klein reported that Pyrum is making significant progress on both the operational and commercial fronts.

Expansion of Pyrum flagship site in Dillingen was “progressing very well,” said Klein, adding that it had recently secured a long-term supply agreement with Continental Tires.

However, Klein acknowledged that Pyrum’s share price was “not performing well" right now: dropping by around 34% in the last six months to €23.50 as at end of business 11 Sept.

Pyrum, he said, has noticed "for months that US investors, in particular, are withdrawing from the green-tech sector in Europe and are therefore also slowly selling off our shares.”

The CEO noted that the share-price decline was “not due to Pyrum itself,” but instead related to a general shift by funds towards investing at fixed interest rates.

Until recently, accordng to Klein, the selling of shares had been carried out in a “very professional, controlled and slow manner. 

"But in the past two or three weeks the same investors are still selling but now in a much more aggressive manner,” the Pyrum leader added.

Klein went on to speculate that upcoming presediential elections in the US and political developments in Germany might be influencing these decisions.

The German tire-recycling startup is, therefore, “working hard” to convince new investors of the potential returns from its business model, he added.

To address the issue, Pyrum has had to “take action” in Oslo, where it went public with an IPO on the Euronext Growth market in 2021.

“There are many US funds active in Oslo, which is why much of the money for our IPO came from the US,” Klein explained.

Although this initially benefited Pyrum, Klein concluded that the current political climate is putting the company at a disadvantage.