Loop Industries dives more than 20% after short seller report

Loop Industries

15/12/2020 20:32

** Shares of Canadian plastics production Loop Industries Inc
 LOOP.O  plunge 21.9% on Tues after short seller Hindenburg
Research issues report https://hindenburgresearch.com/loop-response
 questioning co's process for recycling plastic
    ** On Mon Loop released via an SEC filing a report https://www.sec.gov/Archives/edgar/data/1504678/000165495420013498/lp_ex992.htm
 that it said provided "independent verification" of its
process, which it says breaks down waste PET plastic and
polyester fiber feedstock into monomers, "primary building
blocks" for making like-new plastic  urn:newsml:reuters.com:*:nACSpLQNsa
    ** However, Hindenburg noted, the co in its report
"immediately admits that the verification 'was not intended to
certify the yields or economic viability of the technology of
the process.' These omissions render the analysis largely
meaningless."
    ** Loop was not immediately available for comment
    ** The short seller also pointed to a finding in the report
that some of the process's operations required "minor
interventions" in the pilot phase that would need to be resolved
for full-scale production
    ** Hindenburg is short LOOP and has a $0 PT on the stock.
"We...continue to strongly believe that Loop's claimed
technological advancements do not exist," the short seller wrote
    ** With Tues losses, LOOP has fallen ~28% since Fri 

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