Business
Loop Industries Reports Second Quarter Fiscal 2025 Results and Provides Update on Financing and Commercialization Plans
Reed financing expected to be finalized in November 2024Continued progress towards groundbreaking of Infinite LoopTM India manufacturing facility on
About this update from Loop Industries, Inc.
[{"type":"text","content":"Reed financing expected to be finalized in November 2024Continued progress towards groundbreaking of Infinite LoopTM India manufacturing facility on scheduleLoop management to hold update call at 8:30 AM ET on October 16, 2024 MONTREAL, QC / ACCESSWIRE / October 15, 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 reported its consolidated financial results for the second quarter for fiscal year 2025 and provided an update on its financing and commercialization activities.Financing UpdateOn July 31, 2024, Reed Management SAS (\"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 the financing package for Loop. We are expecting that the remaining closing conditions will have been addressed, and that the financing will be completed, in November 2024. This is expected to provide the initial tranche of €10 million in a Convertible Preferred Security to be issued by Loop, bearing a 13% PIK dividend rate and 5-year term, with further amounts at future dates.In order to ensure the Company's continuing liquidity in the event of unanticipated timing delays in closing the transaction with Reed, Loop's CEO and an independent director of the Company have committed to provide bridge financing of $2 million if required.Infinite Loop™ India UpdateLoop, in collaboration with its joint venture partner, Ester Industries Ltd. (\"Ester\"), is steadily advancing the upcoming Infinite Loop™ manufacturing facility in India.The joint venture hired a leading international engineering firm to conduct a land study to find the optimal location in India for the manufacturing facility, based on several key requirements such as infrastructure, proximity to a seaport for exports, renewable energy for a reduction in CO2 emissions and close proximity to waste PET and polyester feedstocks. Based on the analysis ...