Business
Loop Industries Announces Important Milestone Towards Completing the Previously Announced Reed Management Financing Package and Partnership
Societe Generale to acquire 75% of Reed Management SAS ("Reed")At closing this would secure funding for Reed's planned investments including €35 million
About this update from Loop Industries, Inc.
[{"type":"text","content":"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 LoopMONTREAL, 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 30th, 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 termThe 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-projectJulien Touati, CEO of ...