RCS - Loop Industries - Loop Industries Announces Important Milestone
31/07/2024 13:00
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RNS Number : 6003Y Loop Industries 31 July 2024
Loop Industries Announces Important Milestone
· Societe Generale to acquire 75% of Reed Management SAS ("Reed")
· At closing this would secure funding for Reed's planned
investments including €35 million financing package through JV partnership
with Loop
MONTREAL, QC / ACCESSWIRE / July 31, 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
polyester fiber, today provided an update regarding the Company's joint
venture ("JV") partnership and financing agreement with Reed. This morning,
Reed and Societe Generale announced that Societe Generale has agreed to
acquire 75% of Reed and provide funding for Reed initially amounting to €250
million, which can be further increased to €350 million. This transaction,
which is subject to customary closing conditions including regulatory
approval, would secure Reed's funding for its planned investments, including
its previously announced JV partnership for the European deployment of Loop's
technology and a tiered financing package for Loop as disclosed in the
agreement between Reed and Loop announced on May 30(th), 2024.
Under the terms of the agreement between Loop and Reed, Reed would provide
capital as follows:
· €10M investment in a Convertible Preferred Security to be
issued by Loop, which contains a 13% PIK dividend rate and 5-year term, which
may convert into Loop stock at $4.75 per share or redeemed in cash
· €25M loan to Loop in two equal tranches - first tranche to
support global deployment opportunities paid at closing and second tranche to
support European deployment opportunities paid in the following 12 months with
both tranches having a 13% PIK interest rate and 3-year term
The Reed announcement today is a significant step towards implementing Loop's
transaction with Reed. Loop expects to fulfill the remaining closing condition
of the transaction within the timeframe for the closing of the transaction
between Reed and Societe Generale. Loop is progressing well in discussions to
obtain government and other financing.
To view the press release issued by Societe Generale, please click on the
following link:
https://www.societegenerale.com/en/news/press-release/transition-investment-reed-acquisition-project
(https://pr.report/15g9)
Julien Touati, CEO of Reed, commented saying: "We are extremely proud of this
milestone in our development and look forward to continuing to cooperate with
Loop in the implementation of our partnership in view of supporting Loop's
journey in the years to come".
Daniel Solomita, Founder and CEO of Loop Industries, commented saying: "We are
pleased that Societe Generale, one of Europe's largest financial institutions,
is becoming a major investor in Reed. Having Societe Generale, Reed and Julien
as long-term partners with Loop will enhance our positioning for the future as
we deploy our technology in India, Europe and beyond. This funding will
provide the majority of the capital required for Loop's equity commitment for
the Infinite Loop™ India facility, as well as for Loop's operating expenses
prior to startup of the facility."
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/1550) . 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 strategies, ability to improve
and expand its capabilities, competition, expected activities and expenditures
as Loop pursues its business plan, the adequacy of its available cash
resources, regulatory compliance, plans for future growth and future
operations, the size of Loop's addressable market, market trends, and the
effectiveness of Loop's internal control over financial reporting.
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) commercialization of our technology
and products, (ii) our status of relationship with 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) engineering,
contracting, and building our manufacturing facilities, (vii) our ability to
scale, manufacture, and sell our products in order to generate revenues,
(viii) our proposed business model and our ability to execute thereon, (ix)
the ability to obtain the necessary approvals or satisfy any closing
conditions in respect of any of our proposed partnerships, (x) our joint
venture projects and our ability to recover certain expenditures in connection
therewith, (xi) adverse effects on the Company's business and operations as a
result of increased regulatory, media, or financial reporting scrutiny,
practices, rumors, or otherwise, (xii) disease epidemics and other
health-related concerns and crises, which could result in reduced access to
capital markets, supply chain disruptions and scrutiny, embargoing of goods
produced in affected areas, government-imposed mandatory business closures and
any resulting furloughs of our employees, government employment subsidy
programs, travel restrictions or the like to prevent the spread of disease, or
market or other changes that could result in non-cash impairments of our
intangible assets, and property, plant and equipment, (xiii) the effect of the
continuing worldwide macroeconomic uncertainty and its impacts, including
inflation, market volatility and fluctuations in foreign currency exchange and
interest rates, (xiv) the outcome of any U.S. Securities and Exchange
Commission ("SEC") investigations or class action litigation filed against us,
(xv) our ability to hire and/or retain qualified employees and consultants,
(xvi) other events or circumstances over which we have little or no control,
and (xvii) 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.
For More Information:
Investor Relations:
Kevin C. O'Dowd, Investor Relations
Loop Industries, Inc.
+1 617-755-4602
kodowd@loopindustries.com
Media Inquiries:
Andrea Kostiuk, VP Marketing & Communications
Loop Industries, Inc.
+1 (450) 951-8555
akostiuk@loopindustries.com
SOURCE: Loop Industries, Inc.
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