Loop Industries Closes Strategic and Financing Transaction With Reed Societe Generale Group

Rhea-AI Summary

Loop Industries (Nasdaq:LOOP), a clean technology company focused on manufacturing 100% recycled PET plastic and textile-to-textile polyester fiber, has successfully closed its previously announced strategic and financing transaction with Reed Societe Generale Group. The transaction was completed according to the terms and conditions disclosed by the Company on December 12, 2024, marking a significant step in Loop's mission to accelerate a circular plastics economy.

Positive

• Successfully closed strategic financing transaction with Reed Societe Generale Group

Negative

• None.

Insights

Financial Analyst

Loop Industries' strategic financing deal with Reed Societe Generale Group marks a important development for this $66.7M market cap company operating in the circular plastics economy. The successful transaction closure strengthens Loop's financial position in the competitive recycled PET market. While specific financial terms aren't disclosed in this announcement, the timing is particularly relevant given the growing global emphasis on sustainable materials and circular economy initiatives. The recycled PET market is projected to reach $13.1B by 2027, with a CAGR of 6.7%. For a smaller cap company like Loop, securing strategic financing is vital for scaling operations and maintaining competitive positioning against larger players in the sustainable materials sector. However, investors should monitor the transaction's terms and potential dilution effects once fully disclosed.

Environmental Technology Specialist

The strategic partnership with Reed Societe Generale Group could accelerate Loop's innovative PET recycling technology deployment. Their proprietary depolymerization process addresses a critical market need by creating virgin-quality recycled PET, particularly valuable in the current context where major brands are committed to increasing recycled content in their packaging. The textile-to-textile polyester fiber capability is especially noteworthy, as it tackles the growing challenge of textile waste - an estimated 87% of textile waste ends up in landfills or incinerators. This financing could help Loop scale their technology at a important time when regulatory pressures and corporate sustainability commitments are driving demand for recycled materials. The partnership may also provide access to broader European markets, where recycling regulations are particularly stringent.

MONTREAL, QC / ACCESSWIRE / December 23, 2024 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and textile-to-textile ("T2T") polyester fiber, is pleased to announce the successful closing of the strategic and financing transaction with Reed Societe Generale Group based on the terms and conditions disclosed by the Company on December 12, 2024.

About Loop Industries

Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpets and textiles of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely without degradation of quality, successfully closing the plastic loop. Loop Industries is contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future.

Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP."

For more information, please visit www.loopindustries.com. Follow Loop on Twitter: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries

Forward-Looking Statements

This news release and the news release referenced herein contain "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "should," "could," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or "continue," the negative of such terms or similar words. These forward-looking statements include, without limitation, statements about Loop's market opportunity, its growth strategies, plans for use of expected proceeds, ability to improve and expand its capabilities and seek additional financing, and plans for future growth and future operations including expansion in Europe and advancing the joint venture in India. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Loop's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with among other things: (i) our ability to commercialize our technology and products, (ii) the status of our relationships with our partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) our ability to continue as a going concern, (vii) engineering, contracting, and building our manufacturing facilities, (viii) our ability to scale, manufacture, and sell our products in order to generate revenues, (ix) our proposed business model and our ability to execute it, (x) our ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (xi) our joint venture projects and our ability to recover certain expenditures in connection them, (xii) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xiii) public health issues, such as disease epidemics, which may lead to reduced access to capital markets, supply chain disruptions, and government-imposed business closures, (xiv) war, regional tensions, and economic or other conflicts that could impact market stability and our business; (xv) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xvi) the outcome of any Securities and Exchange Commission ("SEC") investigations or class action litigation filed against us, (xvii) our ability to hire and/or retain qualified employees and consultants, (xviii) other events or circumstances over which we have little or no control, and (xix) other factors discussed in Loop's Annual Report on Form 10-K for the fiscal year ended February 29, 2024 filed with the SEC and in Loop's subsequent filings with the SEC. More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, unless otherwise required by law.

For More Information:

Investor Relations:

Kevin C. O'Dowd, Investor Relations
Loop Industries, Inc.
+1 617-755-4602
kodowd@loopindustries.com

SOURCE: Loop Industries, Inc.

View the original press release on accesswire.com

FAQ

What strategic transaction did Loop Industries (LOOP) close on December 23, 2024?

Loop Industries closed a strategic and financing transaction with Reed Societe Generale Group, following terms disclosed on December 12, 2024.

What is Loop Industries' (LOOP) main business focus?

Loop Industries focuses on manufacturing 100% recycled PET plastic and textile-to-textile (T2T) polyester fiber, aiming to accelerate a circular plastics economy.

When did Loop Industries (LOOP) announce the terms of the Reed Societe Generale Group transaction?

Loop Industries announced the terms of the Reed Societe Generale Group transaction on December 12, 2024.

What stock exchange is Loop Industries (LOOP) listed on?

Loop Industries (LOOP) is listed on the Nasdaq stock exchange.