RCS - Loop Industries - Loop Industries Completes Deal with Reed Societe

Loop IndustriesAnnouncement

13/12/2024 08:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241213:nRSM9578Pa&default-theme=true

RNS Number : 9578P  Loop Industries  13 December 2024

Loop Industries Completes Convertible Preferred Financing With Reed Societe
Generale Group and Sells First Technology License For An Infinite Loop
Manufacturing Facility in Europe

·      REED SOCIETE GENERALE GROUP INVESTS €10 MILLION IN LOOP VIA A
CONVERTIBLE PREFERRED SECURITY AT A $4.75 CONVERSION PRICE.

·      LOOP COMPLETES ITS INAUGURAL SALE OF AN INFINITE LOOP™
TECHNOLOGY LICENSE, GENERATING AN UPFRONT PAYMENT OF €10 MILLION.

·      FORMATION OF A EUROPEAN PARTNERSHIP TO DEPLOY INFINITE LOOP™
MANUFACTURING TECHNOLOGY.

·      PROCEEDS TO SUPPORT CONSTRUCTION OF THE INFINITE LOOP™ FACILITY
IN INDIA AND FINANCE LOOP'S OPERATIONAL CASH REQUIREMENTS.

LOOP MANAGEMENT TO HOLD UPDATE CALL AT 8:45 AM ET on December 13, 2024

MONTRÉAL, QC / ACCESSWIRE / December 12, 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, has secured €10 million through
a convertible preferred security financing with Reed Societe Generale Group, a
European investment firm majority-owned by the bank Societe Generale.
Additionally, as part of the Reed Societe Generale Group transaction, Loop has
finalized the sale of its first Infinite Loop™ technology license,
generating an initial €10 million payment, with additional milestone-based
payments from Reed Societe Generale Group to follow.

The Reed Societe Generale Group transaction marks a pivotal step in Loop's
commercialization strategy, enabling the deployment of its patented recycling
technology across Europe and supporting capital investment in cost-effective
manufacturing regions, including its joint venture in India with strategic
partner Ester Industries Ltd. Proceeds from the financing and licensing deal
will fund the Indian project and Loop's operational cash flow needs.

Key terms of the €10 million convertible preferred security include:

·      13% PIK dividend rate

·      5-year term

·      Convertible to Loop common stock at $4.75 per share or redeemable
in cash

The technology license will be granted to a European partnership owned 90% by
Reed Societe Generale Group and 10% by Loop, which is being formed to develop
Infinite Loop™ manufacturing facilities in Europe. Loop retains the right to
increase its equity stake in the European manufacturing facility, as well as
potential future facilities, to a maximum of 50% for each facility. The
license is to build one Infinite Loop™ manufacturing facility in Europe.
Future facilities under this partnership will require the purchase of
additional technology licenses from Loop.

The license sale underscores the commercial readiness of Loop's technology,
validated by four years of successful operations at its Terrebonne facility,
which supplies bottle-grade PET resin for consumer packaging and T2T polyester
fiber to advance circular fashion for apparel brands. Loop is committed to
expanding the reach of its proven solution to the plastic waste global issue
by partnering with well-financed, reliable customers through technology
licenses and engineering services. This strategy allows Loop to address global
demand in regions where it does not plan to build facilities, driving further
growth and value creation while focusing Loop's internal resources and capital
on direct equity investments.

With regulatory approval for Societe Generale's acquisition of a 75% stake in
Reed Societe Generale Group finalized, it is positioned to deploy capital into
this and other projects. The previous condition precedent to closing relating
to government funding is no longer applicable, although Loop expects that such
additional financing will be available when the Indian project is approved to
begin construction. Funding for both the financing and the initial payment for
the technology license is expected within seven business days following the
incorporation of the European partnership company.

Julien Touati, CEO of Reed Societe Generale Group, commented: "Reducing
dependency on virgin plastics is a global challenge. We are proud to support
the rollout of Loop's technology in Europe by becoming the majority
shareholder of this European partnership. This strategic investment allows us
to leverage Loop's unique expertise and strong relationships with world-class
brands committed to decarbonizing their supply chains. It fits perfectly with
our ambition to actively contribute to the industrialization of Europe's
circular economy, significantly reduce pollution, and foster sustainable
growth."

"The sale of our first technology license is a transformative milestone,
proving the scalability and market readiness of our Infinite Loop™
technology," said Daniel Solomita, CEO and Founder of Loop Industries. "Our
financing agreement and partnership with Reed Societe Generale Group propels
us into a new phase of growth - expanding into Europe with strategic precision
while advancing our flagship Infinite Loop™ project in India. These
strategic steps align with our long-term investment vision and underscore our
commitment to innovation, scalability, and delivering exceptional value for
our shareholders. I look forward to working closely with Julien and his team
at Reed Societe Generale Group in leading the circular economy in plastic
packaging and circular fashion in Europe."

Corporate Update Call

Senior Management of Loop will host a corporate update call, followed by a
question-and-answer session, which can be accessed via the dial-in numbers
below.

Date: Friday, December 13, 2024

Time: 8:45 am Eastern Time

Participant joining details (by Telephone):

United States (Local): +1 404 975 4839

United States (Toll-Free): +1 833 470 1428

Access Code: 625641

OR

Registration
Link: https://www.netroadshow.com/events/login?show=2e808989&confId=75536
(https://pr.report/4zr9)

- Avoid wait time - Bypass speaking with an operator to join the call

- Receive a Calendar Invitation with call access details including your unique
PIN

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
(https://pr.report/4zz4) . Follow Loop on Twitter: @loopindustries, Instagram:
loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries

Forward-Looking Statements

This news release contains "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 and
timelines for completing the €10 million convertible preferred stock
financing and technology license sale, 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 (https://pr.report/4zr0) . 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 (mailto:kodowd@loopindustries.com)

Media Inquiries:

Andrea Kostiuk, VP Marketing & Communications

Loop Industries, Inc.

+1 (450) 951-8555
akostiuk@loopindustries.com (mailto:akostiuk@loopindustries.com)

SOURCE: Loop Industries

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAFIFLLFFLVLIS