Connect with us

Tech

Loop expands sustainable plastics technology in Europe and India

Published

2 days ago

on

Loop expands sustainable plastics technology in Europe and India

The funds from both the financing and licensing transactions will be allocated to the Indian venture. Credit: dee karen/Shutterstock.

The convertible preferred security agreement includes a 13% payment-in-kind (PIK) dividend rate, a five-year duration and the option to convert into Loop common stock at a price of $4.75 per share, or to be redeemed for cash. 

In conjunction with this financial agreement, Loop also completed the sale of its first Infinite Loop technology licence to the same entity for an upfront payment of €10m, with additional payments contingent on reaching certain milestones. 

This financial engagement with Reed Societe Generale Group is part of Loop’s strategy to commercialise its recycling technology throughout Europe and to fund capital investments in regions where manufacturing costs are lower, including the company’s joint venture in India with Ester Industries.  

In May, Loop Industries formed a joint venture with Ester Industries to build an Infinite Loop India facility for recycled rDMT and rMEG production. 

The funds from both the financing and licensing transactions will be allocated to the Indian venture and to support Loop’s cash flow requirements. 

The technology licence entails the creation of a European partnership that will be 90% owned by Reed Societe Generale Group and 10% by Loop. This partnership aims to establish Infinite Loop manufacturing facilities within Europe.  

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free
sample

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData







Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

While Loop maintains an option to increase its stake in these facilities up to 50%, the current license is for the construction of one such facility. Any additional facilities under this partnership would necessitate further technology licenses from Loop. 

Loop’s recycling technology has been operational for four years at its Terrebonne plant, producing PET resin for packaging and polyester fibre for clothing.  

By licensing its technology and offering engineering services, Loop intends to meet international demand in areas where it does not plan to establish its own manufacturing plants, stimulating growth and creating value without overextending its resources or capital. 

Loop Industries CEO and founder Daniel Solomita said: “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.” 

Following regulatory approval for Societe Generale’s acquisition of a 75% interest in Reed Societe Generale Group, this entity is now positioned to invest in such ventures. The previous prerequisite for closing this deal related to government funding has been removed. 

However, Loop anticipates that additional funding will become accessible when construction on the Indian project is authorised. The funding for both the convertible security and initial licence fee is expected within seven business days after forming the European partnership company. 

Reed Societe Generale Group CEO Julien Touati said: “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 decarbonising their supply chains. It fits perfectly with our ambition to actively contribute to the industrialisation of Europe’s circular economy, significantly reduce pollution, and foster sustainable growth.” 


Related Topics:
Continue Reading