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Fake LOOP partnerships- Coca-Cola and PepsiCo refused to divulge whether any plastic had been recycled as part of their partnerships with Loop.
LOOP will below $5 before the end of the year
Advanced Recycling Company Loop Industries Called a Fraud
Loop Industries stock plummets as report from Hindenburg Research calls the company’s advanced recycling claims “smoke and mirrors with no viable technology.”
Clare Goldsberry | Oct 14, 2020
https://www.plasticstoday.com/advanced-recycling/advanced-recycling-company-loop-industries-called-fraud
Recycling plastics — all types of plastics — has been a holy grail for the industry as well as brand owners who depend on plastic packaging for convenience, safety, product freshness, and security. As the accumulation of plastic waste has become a high-profile issue, finding a recycling solution has taken on increased urgency.
Environmental activist groups have pressured big brand owners such as PepsiCo, Coca-Cola, and Nestle through shareholder proposals and even lawsuits if they don’t clean up the plastic waste caused by their products. So eager are these big companies to find the magic bullet to remove plastic bottles, containers, and other plastic items from the environment that they have been ripe for whatever scheme might come along offering them a way out of this mess.
I’ve often wondered about the press releases I get from various startups touting advanced recycling. Many times, they promote themselves big at the beginning, then go quiet. No follow-up information as to how the plan is working, how many tons of waste plastic they’ve managed to convert to virgin, food-grade plastic to help brand owners achieve sustainability goals. Crickets!
Call me a skeptic.
So, it didn’t surprise me when a news bulletin popped up announcing that Montréal-based Loop Industries had lost 39% of its stock value when charges of fraud slammed the company. Hindenburg Research (which disclosed that it holds a short position in Loop Industries’ stock) published a 28-page report titled, “Loop Industries: Former Employees and Plastics Experts Blow the Whistle on this ‘Recycled’ Smoke and Mirrors Show.”
You can read the report and make your own judgment, but I began questioning this company’s business model months ago. I had become suspicious because I was always getting press releases about new ventures with PepsiCo, Coca-Cola, Nestle, Danone, and other big-name brand owners, with Loop taking their PET bottles and containers and depolymerizing the material into monomers that could be made into new food-grade PET. I’ve probably done about 10 articles on Loop Industries over the past two years, but still know very little about them or whether their advanced chemical recycling technology is reaping the expected rewards.
Two labs, two results
Here’s a run-down of what Hindenburg Research discovered during a six-month investigation, interviewing former employees, competitors, industry experts, and company partners.
“Loop Industries has never generated revenue, yet calls itself a technology innovator with a ‘proven’ solution that is ‘leading the sustainable plastic revolution.’ Our research indicates that Loop is smoke and mirrors with no viable technology.”
“Former employees revealed that Loop operated two labs: One reserved for the company’s two 20-something lead-scientist brothers and their father, where incredible results were achieved, and a separate lab where rank-and-file employees were unable to replicate the supposedly breakthrough results.”
“The two brothers, who act as lead scientists for Loop and who co-invented Loop’s recycling process, appear to have no post-graduate education in chemistry and list no work experience other than Loop.”
“According to a former employee, Loop’s previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were ‘technically and industrially impossible.’ The same employee told us the company’s claims of producing ‘industrial-grade purity’ base chemicals from PET were false.”
“According to litigation records, Loop CEO Daniel Solomita hired a convict, who had previously pled guilty to stock manipulation, to help raise Loop’s startup capital. That convict introduced Solomita to another convict, who facilitated Loop’s first investment. Solomita has no apparent formal science education but has a history of stock promotion at another publicly traded company that subsequently imploded.”
“Executives from a division of key partner Thyssenkrupp, with whom Loop entered into a ‘global alliance agreement’ in December 2018, told us their partnership is on ‘indefinite’ hold and that Loop ‘underestimated’ both costs and complexities of its process.”
“We contacted Loop’s other partners, including Coca-Cola and PepsiCo, most of whom refused to divulge whether any plastic had been recycled as part of their partnerships with Loop. Comments from Danone, owner of the Evian brand, suggested it had not bought any PET from Loop thus far. We suspect these partnerships have gone nowhere.”
“Loop’s JV with PET and chemical company Indorama, promoted frequently over the last two years as an imminent revenue stream, is ‘still being finalized,’ according to an employee, despite being announced in 2018. An Indorama employee told us no production has taken place thus far.”
“We expect Loop will never generate any meaningful revenue. With a market cap of $515 million, we see 100% downside to Loop once it burns through its $48 million in balance sheet cash.”
Hindenburg Research has submitted its findings to regulators.
Too good to be true
I’ve often been told that if it seems too good to be true, it probably is. The idea of being able to take all types of PET — even PET that has been floating around in the ocean for two years — and turn it into virgin-like new PET is certainly attractive at a time when sustainability is cited as a primary goal in every company’s annual report.
When it started its investigation, Hindenburg Research asked one expert why everybody in the plastics industry was not utilizing Loop’s process if it was as revolutionary as the company claimed. He responded, “Everyone isn’t doing it because I don’t see how you could make any money or save any money in doing it. It appears to me that they took a very complex process, significantly simplified it, omitted a lot of serious stuff, and only mentioned the favorable highlights. I would say it’s a scam in that sense.”
Did any of these multinational corporations actually vet Loop Industries before jumping into bed with them? Or were they so blinded by the light of recycling magic they bought into this whole scheme hook, line, and sinker?
Many long-time big-name resin producers never heard of Loop Industries, including Rick Perez, CEO of Avangard Innovative in Houston, whose company announced a partnership with $35-billion market cap Dow in 2020 supplying post-consumer plastic film pellets to Dow. “He told us he had ‘never heard’ of Loop and that ‘nobody has ever talked to [him] about [Loop’s] technology,'” said Hindenburg’s report.
Late in the day on Oct. 13, Loop Industries challenged the Hindenburg Research report, claiming that Hindenburg has “not engaged with Loop directly nor does Loop Industries believe Hindenburg Research has done the required due diligence for this report. The claims it makes are either unfounded, incorrect, or based on the first iteration of Loop’s technology, known as Gen 1, which was in use between 2014 and 2017. In 2017, Loop reinvented its process and developed its Gen 2 technology, which is at the core of Loop’s commercialization projects,” explained Loop Industries.
Hindenburg’s research addresses the Gen 2 development in noting that the process was invented and patented by the two Essaddam brothers, Adel (who is listed as Loop’s Lead Scientist) and Fares (listed as Loop’s Technology Lead). The brothers, who are in their 20s, have no apparent post-graduate degrees in chemistry or polymers or any work experience other than Loop. Adel started at Loop just months after completing his diploma and Fares started working for Loop while still attending university.
Hindenburg Research called into question the brothers’ abilities in complex polymer development. “In other words, the company claims to have discovered how to turn worthless trash into pure gold, a feat that multi-billion-dollar chemical companies such as DuPont, Dow Chemical, and 3M have been unable to achieve on a large scale despite years of efforts,” said Hindenburg’s report.
I would really like to receive a progress report from Loop Industries on how many tons of PET waste from various sources they’ve managed to process into virgin-like PET over the past two years. In other words, tell me your success story complete with commentary from PepsiCo, Coca-Cola, and other satisfied clients.
I’m waiting for PepsiCo and Coca-Cola to release a statement, which they may or may not do, depending on how badly they feel about being scammed. But I’ll keep you posted. This story isn’t over.
https://www.plasticstoday.com/advanced-recycling/advanced-recycling-company-loop-industries-called-fraud
How low can it go ? Trying to figure out how low to short this stock. $5 seems ambitious but also inevitable- Easy money
lug nuts unwinding off the rim
LOOP
Update: $LOOP just disclosed an SEC investigation and receipt of a subpoena from the SEC requesting information about its technology and partnership arrangements.
Update: $LOOP just disclosed an SEC investigation and receipt of a subpoena from the SEC requesting information about its technology and partnership arrangements.https://t.co/XigJn4Bi2C https://t.co/ecYbyLuqht
— Hindenburg Research (@HindenburgRes) October 16, 2020
One of Loops own employees called their claims "technically and industrially impossible"
Loop Industries: Former Employees and Plastics Experts Blow The Whistle On This “Recycled” Smoke And Mirrors Show
Published on October 13, 2020
https://hindenburgresearch.com/loop/
LOOP smoke and mirrors finally exposed- Nowhere to go but down from here
A response from the co.
Loop Industries Responds to Inaccurate Hindenburg Research Report. Full press release here: https://t.co/EIC2lefamD pic.twitter.com/FqMgBwWa2q
— Loop Industries (@loopindustries) October 13, 2020
Volatility is nice.
I am thinking the bear raid is too thinly traded to work as intended.
Well, at least as is dropped 30% at the beginning, if it was 20%, it probably would have seen more of a sell off.
"Short seller Hindenburg: "Loop Industries' recycling technology 'fiction' "
https://finance.yahoo.com/news/hindenburg-says-loop-industries-recycling-technology-is-fiction-124136701.html
Yep, same. "Former employees revealed $LOOP operated 2 labs: one reserved for the company’s two twenty-something lead scientists & their father, where incredible results were achieved & a separate lab where rank-and-file employees were unable to replicate the supposedly breakthrough results."
"The two brothers who act as lead scientists for $LOOP and who co-invented its recycling process appear to have no post-graduate education in chemistry and list no work experience other than Loop."
New from us:
— Hindenburg Research (@HindenburgRes) October 13, 2020
Loop Industries—Former Employees and Plastics Experts Blow The Whistle On This “Recycled” Smoke And Mirrors Showhttps://t.co/aA8TkppD9E$LOOP (1/x)
New from us:
— Hindenburg Research (@HindenburgRes) October 13, 2020
Loop Industries—Former Employees and Plastics Experts Blow The Whistle On This “Recycled” Smoke And Mirrors Showhttps://t.co/aA8TkppD9E$LOOP (1/x)
Been in the stock for 3 years...
The way it trades (and how it has traded) has nothing to do with technicals...
Have a nice day
I posted on 7/27. Your math is wrong. Hasn’t even been two months.
So it goes up 3 months later and you say technical analysis! Been investing since 79 and technical analysis is worthless...
Please tell me more.
$17.17 52w high today.
Technical analysis is worthless!!
If it crosses $14 it’s a good long opportunity as the handle will be complete and breakout looks to go $20-23. Textbook cup & handle on the 6 month chart
Looks like a cup & handle on the chart. Handle looks nice. Breakout soon?
Anybody understand this new 8k filing today ? Amendments without details? “ 19.9 per cent of the o/s shares?
Good article. Long for LOOP!
Interesting SA article mentioning LOOP this week. Anyone else out there?
https://seekingalpha.com/instablog/49945763-plastics-prophet-and-magical-micro-caps/5265042-opportunities-plastics-stocks
Loop Industries Issues Letter to Shareholders
7:30 AM ET, 01/16/2019 - GlobeNewswire
MONTREAL, Jan. 16, 2019 (GLOBE NEWSWIRE) -- Loop Industries, Inc. (Nasdaq: LOOP) (“Loop” or the “Company”), a leading technology innovator in sustainable plastic, today issued the following open letter to shareholders:
Dear Fellow Shareholder,
As we begin the start of a new calendar year, I would like to take a moment to review the many successes we achieved and milestones we reached in 2018. In the pages that follow I provide an update of the current state and trajectory of the plastic crisis, the further developments made with Loop’s breakthrough technology, the progress made along Loop’s commercialization strategy, the demand from and agreements with customers, and the team and organizational development undertaken to enhance our ability to execute each aspect of Loop’s growth plan.
These successes are why I believe that Loop is better positioned than ever to create shareholder value by seizing a massive opportunity and helping to solve a global plastic crisis.
The Plastic CrisisAstonishing facts and figures continue to inform a demand for action to address the plastic crisis. Consider the estimate from the University of Georgia that reports eight million metric tonnes of plastic waste flows into our shared oceans every year, and that, according to The New Plastics Economy, by 2050 more plastic waste is expected to be present in the ocean than fish (by mass). Couple this information with the global annual market demand for PET plastic and polyester fiber at nearly $130 billion, and the current growth projections from the 2018 IHS Polymer Markit Report indicating this will exceed $160 billion by 2022, and you quickly see the scale of the crisis facing our shared environment and economy.
And the world is responding. Trends in regulation, media, consumer demand and brand owner commitments abound. Consider just a few of the developments in 2018:
The proposed European UnionDirective on the reduction of the impact of certain plastic products on the environment will require that PET plastic bottles contain 25% recycled content by 2025 and 30% by 2030. In addition, country-level regulations, such as those in France, propose to increase the price of single-use plastic containers that use virgin PET plastic to discourage consumers from buying packaging that does not contain recycled content.Plastic pollution continues to be one of the most persistently covered environmental issues by media and local and global environmental non-governmental organizations.Global consumer goods companies have made ambitious pledges to make the transition to a circular plastic economy. For instance, in January 2018, evian® committed to a 100% recycled content package by 2025, and Coca-Cola committed to a 50% recycled content package by 2030. Also in 2018, PepsiCo committed to a 25% recycled content package by 2025 and Nestle Waters committed to a 50% recycled content package by 2025.
These trends and factors continue to support our thesis that the transformation from a linear to a circular plastic economy is necessary, inevitable and profitable because the demand for sustainable, cost-effective, marketable Loop™ PET plastic resin and polyester fiber is substantial.
Loop’s TechnologyThe power of Loop’s technology lies in its ability to divert and recover what is currently considered plastic waste from landfills, rivers, oceans and natural areas for use as feedstock to create new, sustainable, infinitely recyclable Loop™ PET plastic resin and polyester fiber. Loop’s technology can deliver a cost-effective virgin quality PET plastic resin that is cleared for use in food-grade packaging.
But we did not get here overnight. For several years the Loop team worked diligently on our Generation I technology, a process that yielded polyethylene terephthalate (“PTA”) and monoethylene glycol (“MEG”), two common monomers of PET plastic, through depolymerization. While monomers were of excellent purity and strong yield, we continued to challenge ourselves to drive down cost and eliminate inputs. It was during this process that we realized we could eliminate water and chlorinated solvents from the purification process, reduce the number of reagents from five to two and reduce the number of purification steps from 12 to four – if we shifted from the production of PTA to the production of dimethyl terephthalate (“DMT”), another proven monomer of PET plastic that is far simpler to purify.
And so, in September of 2017, I instructed the team to transition fully from the development of our Generation I PTA technology to our Generation II DMT technology. We successfully completed this transition in June 2018 when we activated our newly built Generation II industrial pilot plant which continues to see consistently high monomer yields and excellent purity.
This shift, from producing the monomer PTA to the monomer DMT was a pivotal moment for Loop. The Generation II technology is more cost-effective, easier to commercialize, more economical for our customers and, because it requires fewer energy and resource inputs than conventional PET production processes, we expect it to be one of the most environmentally sustainable methods for producing virgin quality food-grade PET plastic in the world. We believe this enhances our value proposition.
We also took careful steps to have our technology reviewed and vetted by independent experts and ensured that we protected this breakthrough intellectual property.
All of the industry partners who have completed due diligence on our technology have come to the same conclusion independently – that Loop’s technology is efficient at depolymerization, filtration and purification of our monomers and our process output yield is excellent. In addition, the engineers and polymer scientists working with our many customers have conducted due diligence on our technology before committing to buy Loop’s products.
To protect Loop’s technology, and in addition to the patents we hold for Loop’s Generation I technology, we have patents pending for Loop’s Generation II technology in the US, EU and jurisdictions around the world. Freedom to Operate searches have also been conducted that indicate no conflicts with any of our existing patents or applications and we adhere to rigorous internal data and confidentiality controls.
But this is not enough. In 2018, we successfully undertook to secure opinions of regulatory clearance for Loop’s Generation II monomers. I can confirm that, according to our lawyers, the monomers produced through Loop’s technology are cleared for use in the production of PET resin for use in food-grade packaging in the United States, European Union, China, India and Japan. Our lawyers at Keller and Heckman LLP provided the opinion for the European Union and our lawyers at Wiley Rein LLP provided the opinion for the United States, China, India and Japan.
The use of mechanically recycled PET for food grade applications in India is not permitted, and in Japan and China is highly inadvisable for a variety of reasons including the perception of contamination from mechanically recycled sources. We believe that means that Loop™ PET plastic resin and polyester fiber has a distinct advantage in these markets, which represent nearly three billion people or approximately 38% of the global population. Demand from PET manufacturers and global consumer goods companies in these regions has been significant for Loop.
Commercialization ProgressBringing Loop™ PET plastic resin and polyester fiber to market is very exciting – and in 2018, we made tremendous strides that bring Loop closer to realizing the three major streams of revenue we expect this will generate. These revenue sources are expected to be from the sale of Loop™ PET plastic resin and polyester fiber to customers from our joint venture with Indorama Ventures Limited (“IVL”), license fees from Loop’s Waste-to-Resin (“WtR™”) facilities and development fees from the sale and construction of WtR™ facilities around the world. In 2018, we secured key partners, completed agreements with global consumer brands, built our brand and continued to secure the feedstock needed to support Loop’s commercial success.
ProductionThere are two principal modes planned for commercializing production of Loop™ branded PET plastic resin and polyester fiber. These include the retrofit of existing PET production facilities and the development of greenfield integrated WtR™ facilities around the world, which are described here.
In September of 2018, we announced a joint venture with IVL to manufacture and commercialize sustainable polyester resin to meet the growing global demand from beverage and consumer packaged goods companies. The 50/50 joint venture has an exclusive world-wide license to use Loop’s technology to retrofit existing IVL facilities, so each can produce 100% sustainable Loop™ PET plastic resin and polyester fiber. Indeed, the first facility, anticipated to begin commercial production in Q1 2020 in the eastern United States, is expected to be fully subscribed by leading global consumer brands, and IVL is in the process of identifying additional facilities suitable for retrofit.
Partnering with, what I believe to be, the world’s foremost PET plastic resin manufacturer helps bring Loop™ PET sustainable plastic resin and polyester fiber to market more quickly and further emboldens the confidence of our customers to sign multi-year supply agreements and term sheets with Loop. These customers include Danone, PepsiCo, Coca-Cola’s Cross Enterprise Procurement Group, L’Oreal and others.
To drive our WtR™ solution, which is a key pillar of Loop’s commercialization blueprint, December 2018 saw Loop enter into a Global Alliance Agreement with thyssenkrupp Industrial Solutions (“tkIS”) aimed at transforming the future of sustainable PET plastic manufacturing by combining Loop’s breakthrough depolymerization technology with tkIS’s PET Melt-To-Resin® technology. As one of the world’s leading PET and polyester engineering companies, tkIS is perfectly positioned to help Loop commercialize its WtR™ solution – a fully integrated and reimagined manufacturing facility for Loop™ PET plastic resin and polyester fiber.
We believe the WtR™ solution will result in a highly scalable recurring revenue licensing model to supply the global demand for 100% sustainable Loop™ PET plastic resin and polyester fiber, allowing us to rapidly penetrate and transform the plastic market and fully capitalize on our disruptive potential to be the leader in the circular economy for PET plastic. This fundamentally changes where and how PET plastic resin production occurs - no longer does PET plastic resin production need to be bound to fossil fuels and fossil fuel infrastructure. WtR™ facilities could be located near large urban centers where feedstock is located, and transportation and logistics costs could be significantly reduced as the distance between feedstock, manufacturing and customer use is collapsed.
We believe the proposition for those seeking a turn key solution to manufacture Loop™ PET plastic resin and polyester fiber, such as chemical companies, waste managers, existing recyclers and even consumer good companies around the world is compelling. We further believe this will create a recurring licensing revenue stream for Loop while expanding the capacity of Loop™ PET plastic resin and polyester fiber in the marketplace to meet the substantial demand from consumer goods companies.
Supply Agreements with Global Consumer Brands Consumer brands are seeking a solution to their plastic challenge – and they are taking bold action. In the past year we have seen major brands make major commitments to close the loop on their plastic packaging in two ways, by transitioning their packaging to recyclable materials and by incorporating more recycled content into their packaging. We believe Loop™ PET plastic resin and polyester fiber provides the ideal solution for these brands because Loop™ PET plastic resin and polyester fiber is recyclable and contains 100% recycled PET and polyester fiber content with virgin quality suitable for use in food-grade packaging. That means consumer packaged goods companies can now market packaging made from a 100% Loop™ branded PET plastic resin and polyester fiber.
That is why in 2018 we delivered a significant number of announcements with some of the world’s leading brands. Here is a list of the agreements we have released publicly:
Strategic initiative with evian® as part of a long-term Danone global partnership, to enable evian’s® 100% “circular approach” to plastic usage by 2025. The agreement was the result of 18 months of positive collaboration with evian® and the R&D and purchasing teams of its parent company Danone;Multi-year supply agreement with PepsiCo, one of the largest purchasers of recycled PET plastic, enabling them to purchase production capacity from Loop’s joint venture facility with Indorama Ventures Limited in the United States and incorporate Loop™ PET plastic resin into its product packaging by early 2020;Multi-year supply framework with the Coca-Cola system’s Cross Enterprise Procurement Group to supply 100% recycled and sustainable Loop™ PET plastic resin from Loop’s joint venture facility with Indorama Ventures Limited in the United States to authorized Coca-Cola bottlers who enter into supply agreements with Loop;Free new program that allows consumers of Gatorade Gx, a subsidiary of PepsiCo, to return used Gatorade Gx pods to Loop where the PET from the pods are processed using Loop’s technology to make Loop™ PET plastic resin and polyester fiber and all other recyclable components are sent for recycling; andLetter of Intent with L’Oréal Group, the global leader in the beauty industry setting the stage for L’Oréal to work towards becoming the first major cosmetics company in the world to close the loop on their PET plastic packaging by incorporating Loop™ PET.
We look forward to announcing more supply agreements in the coming months.
Brand Building and MediaWe believe the Loop brand stands for sustainability, responsibility, innovation and growth. These values are highly sought after by our customers and partners and are why they have begun to activate the Loop brand through their own brand and product marketing, one of the three key pillars of our brand building strategy that also includes corporate brand building and recruiting and empowering key opinion leaders to amplify the Loop brand.
That is why consumer brands embrace the Loop logo and agree to place it on products containing Loop™ PET plastic resin and polyester fiber, why we work to create awareness about the plastic problem, why we help promote recycling and why we explain that the plastic package can now be seen as a symbol of hope and not the problem.
This approach has led to a significant upswell in brand awareness and media coverage throughout 2018. We received a record number of invitations to conferences and events large and small to share the Loop story and have seen the Loop brand activated by our customers, and through organic and strategic media:
Vice Media documentary exploring how Loop is helping enable evian® to meet its circularity ambitions. Activating our brand using the power of our partners and customers will continue to be a key part of how we bring our brand to market.Forbes article noting how Loop is fast becoming the “intel inside” of plastic. Becoming a ubiquitous symbol of circular and sustainable plastic appearing on all packaging containing Loop™ PET plastic resin and polyester fiber is another key part of our brand awareness strategy.National Geographic campaign highlights not only the importance of activation through and with a partner, but how Loop is positioned as a thought and action leader to help solve the global plastic crisis. Becoming a source for the media to turn when there are questions about the circular plastic economy brings additional credibility to the Loop brand.Wall Street Journal article in which Loop’s technology is identified as a potential solution for consumer-packaged goods companies to build the better bottle they need to avoid an existential crisis. To be noted as a solution to a global plastic crisis is precisely where Loop is intended to be positioned and we take this responsibility seriously.Gatorade Gx and Drinkfinity product packaging, return packaging and websites including the Loop logo.
We will continue to invest in the development and activation of both our marketing and communication functions to grow awareness of the Loop brand and support Loop’s commercialization.
Turning Waste into FeedstockTo Loop, waste PET plastic and polyester fiber is feedstock, the materials introduced into our Generation II depolymerization technology to yield PET monomers. Loop’s technology can use plastic bottles and packaging of any color, transparency or condition, carpet, clothing and other polyester textiles that may contain colors, dyes or additives, and even ocean plastics that have been degraded by sun and salt. This is yet another distinct advantage of Loop™ PET over mechanically recycled PET, our ability to use materials that nearly all other recyclers cannot use. This also means we are creating a new market for materials that have persistently been leaking out of the waste management system and into our shared rivers, oceans and natural areas.
We have a dedicated team studying the availability of feedstock to ensure each planned facility can operate continuously. The team has already successfully identified the sources required for our first joint venture facility with IVL and is now focused on closing supply agreements to secure this feedstock for the long term. The team is also conducting a macro-to-micro analysis in the United States, Canada, European Union and Asia to help inform the size and location of Loop’s next facilities. The approach includes a fulsome inventory of PET materials introduced into a region, the materials collected (or recycled) in the region and the material loss, or the difference between the material introduced and the material collected. This allows Loop to identify not only the material traditionally available for recycling, but how material can be effectively diverted from landfill, rivers, oceans and natural areas by providing a new outlet for what was formerly considered waste.
Organizational DevelopmentWhile having the right market conditions, technology and commercialization plan are key, a skilled management team with extensive experience in consumer goods, packaging, sustainability and commercial development is needed to execute the vision of the company, to predict and adjust to changing market forces and to create shareholder value. That is why I am especially pleased with the recent additions we have made to our management team:
Nelson Switzer, Chief Growth Officer – Nelson Switzer oversees Loop’s approach to growth through customer engagement, sales, marketing, corporate affairs, stakeholder engagement and feedstock management. He is a member of the Loop Executive Team and brings nearly 20 years of experience working in the consumer goods, finance, energy and resource sectors at both the local and international level. He is considered a leading expert in sustainable development, business management and stakeholder engagement and has held adjunct positions and executive in residence status at leading universities including the University of Waterloo and Ivey School of Business. Most recently, Nelson Switzer was the Chief Sustainability Officer for Nestlé Waters North America, Plastic Strategy Leader for Nestlé in North America and Sustainability Leader for Nestlé in the United States.Nelson Gentiletti, Chief Operating and Chief Financial Officer – Nelson Gentiletti is responsible for all of Loop's corporate functions, including finance and legal. He is a member of the Loop Executive Team and brings over 30 years of experience as a public company COO and CFO in the packaging, media, travel and tourism and communication sectors. Mr. Gentiletti has a successful track record in business development, operations management and financing and has an excellent reputation in capital markets. He recently came from Transcontinental Inc. where, as Chief Financial and Development Officer, he participated in the company’s transition from a leading printing and media company to a major flexible packaging and printing provider.
Board and Corporate GovernanceWe are committed to high standards of governance and to this end, we have appointed two new independent members to the Board of Directors. Their long experience running and advising public companies is of great value to me and our senior management team in providing advice and oversight as Loop continues its development as a public company and broadens its shareholder base:
Laurence Sellyn, Lead Independent Director – The former Executive Vice President, Chief Financial and Administrative Officer of Gildan Activewear Inc., Mr. Sellyn played an important role in growth and development as Gildan grew from a small cap company to a large cap public company and the market leader in its industry, became respected for governance and social responsibility and created ?significant value for its shareholders.Sidney Horn, Independent Director – One of the most highly respected and experienced commercial, corporate ?and securities lawyers in Canada, Mr. Horn is a valued business advisor to senior corporate executives who rely on his experience and advice in areas including finance, mergers and acquisitions and corporate governance.
LiquiditySince November 13, 2018 the Company has raised $7.15 million in financing that provides additional liquidity for general corporate and working capital purposes, which includes commercialization of our technology and our research and development efforts.
We continue to pursue additional options to finance our long-term growth strategy as we look to deploy our technology through our two commercial models.
In ClosingEven with all of the success we are experiencing as we execute our plan, I am reminded that being a disruptor is never easy. The most disruptive innovators tend to be met with the most skepticism and criticism. This is precisely why we have had our technology vetted by our partners and customers, why we have protected our technology, why we have gained regulatory certainty, why we have secured leading global brands as customers, why we have gained significant media attention, why we have expanded the universe of feedstock we can use – and why we have brought on the right people with the right skills to lead us.
In closing, when my friends, colleagues and fellow shareholders ask me what I am most excited about there are many items I can call out, but perhaps none more than this – my team and I are privileged to help solve a global environmental crisis and demonstrate that the circular economy is possible and profitable.
We believe we are well positioned for the future and plan to continue to build atop of recent momentum into 2019. Thank you for your continuing support.
Sincerely,
Daniel SolomitaFounder and CEO
Loop Industries and thyssenkrupp Sign Global Alliance Agreement to Transform the Future of Sustainable Pet Plastic Manufacturing
December 19, 2018
Global Alliance Agreement aims to combine Loop Industries’ depolymerization technology with thyssenkrupp Industrial Solutions’ PET Melt-To-Resin® technology
Integration of technologies is intended to provide rapidly scalable Waste-to-Resin (“WTR™”) solution to supply the global demand for 100% sustainable PET and Polyester
thyssenkrupp Industrial Solutions division, Uhde Inventa-Fischer has begun integration assessments and expects conceptual design to be completed in Q1 2019
MONTREAL, Quebec and ESSEN, Germany, Dec. 19, 2018 (GLOBE NEWSWIRE) -- Loop Industries, Inc. (Nasdaq: LOOP), ("Loop" or the "Company"), a leading technology innovator in sustainably produced plastic, and thyssenkrupp Industrial Solutions’ division, Uhde Inventa-Fischer GmbH, a leading global polyester technology provider and polyester plant engineering firm, today announced a strategic alliance expected to shape the future of PET and Polyester manufacturing. The Global Alliance Agreement advances the integration of their respective technologies intended to provide a turn-key industrial solution for license to manufacturing companies seeking a commercially viable technology to produce sustainable PET and polyester plastic.
“We have successfully established a large variety of patented technologies and processes in the global market. This agreement will enable a very resource efficient and cost-attractive solution for the production of sustainable PET and polyester,” said Sami Pelkonen, CEO of the Electrolysis & Polymers Technologies business unit of thyssenkrupp Industrial Solutions. “The alliance with Loop Industries is an important milestone on the way to producing sustainable PET and polyester.”
“This Global Alliance Agreement allows for Loop’s technology to rapidly transform the plastic market and fully capitalize on our disruptive potential as the leader in the circular economy for PET plastic,” said Daniel Solomita, Founder and CEO of Loop Industries, “thyssenkrupp’s extensive engineering expertise and proven Melt-To-Resin® technology provides Loop with a world class partner to bring the Waste-to-Resin manufacturing solution to market.”
Solomita continued, “WTR™ is a key pillar of Loop’s commercialization blueprint to meet global demand from consumer packaged goods and other brands for Loop™ branded sustainable resin. We plan to license the respective technologies developed by Loop and thyssenkrupp Industrial Solutions to manufacturing partners in geographical regions around the world in order to quickly roll out multiple WTR™ plants over the next decade.”
Loop and thyssenkrupp Industrial Solutions have already begun the integration assessment and are collaborating on the WTR™ process design package ready for license to global manufacturing companies who will now be able to establish facilities close to urban centers where feedstock is readily available - and finally decouple PET plastic from fossil fuels. Both companies will retain all rights, titles and interests in and to their respective intellectual property.
About Loop Industries, Inc.
Loop’s mission is to accelerate the world’s shift toward sustainable plastic and away from our dependence on fossil fuels. Loop has created a revolutionary technology poised to transform the plastics industry. This ground-breaking technology decouples plastic from fossil fuels by depolymerizing waste polyester plastic to its base building blocks (monomers). The monomers are then repolymerized to create virgin-quality polyester plastic that meets FDA requirements for use in food-grade packaging. For more information, please visit www.loopindustries.com. Follow us on Twitter: @loopindustries, Instagram: loopindustries and FB: https://www.facebook.com/Loopindustrie/
About thyssenkrupp Industrial Solutions AG
The Industrial Solutions business area at thyssenkrupp is a leading partner for the engineering, construction and service of industrial plants and systems. Based on more than 200 years of experience thyssenkrupp supply tailored, turnkey plants and components for customers in the chemical, fertilizer, cement, mining and steel industries. As a system partner to the automotive sector thyssenkrupp develop highly specialized solutions to meet the individual requirements of their customers. More than 16,000 employees worldwide form a global network with a technology portfolio that guarantees maximum productivity and cost-efficiency.
Forward-Looking Statements
This news release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. 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 (i) commercialization of our technology and products, (ii) development and protection of our intellectual property, (iii) unexpected industry competition, (iv) the need to raise capital to meet business requirements, (v) our manufacturing facility, and (vi) our ability to sell our products in order to generate revenues. More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in our filings with the Securities and Exchange Commission (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.
Investors:
Jason Assad
LR Advisors LLC.
678-570-6791
Jwassad@bellsouth.net
Media Inquiries:
Nelson Switzer
Loop Industries
+1 (450) 951-8555 ext. 230
nswitzer@loopindustries.com
Tino Fritsch
Head of Communications
thyssenkrupp Industrial Solutions AG
+49 (201) 844 534486
tino.fritsch@thyssenkrupp.com
Loop Industries, Thyssenkrupp Industrial Solutions Unit Form Alliance For Sustainable PET Plastic Manufacturing
7:54 AM ET, 12/19/2018 - MT Newswires
07:54 AM EST, 12/19/2018 (MT Newswires) -- Loop Industries, Inc. (LOOP), a technology firm involved in sustainably produced plastic, and thyssenkrupp Industrial Solutions' division, Uhde Inventa-Fischer GmbH, a polyester plant engineering firm, on Wednesday unveiled a strategic alliance.
A joint statement said the global alliance advances the integration of the duo's technologies to aid companies seeking commercially viable technology to produce sustainable PET and polyester plastic.
"This agreement will enable a very resource efficient and cost-attractive solution for the production of sustainable PET and polyester," said Sami Pelkonen, CEO of the electrolysis & polymers' technologies business unit at thyssenkrupp. "The alliance is an important milestone on the way to producing sustainable PET and polyester."
Dear Friends and Fellow Loop Industries (Nasdaq: LOOP) Shareholders,
I thought you may appreciate the link to last night’s CBS 60 Minutes show which featured an insightful segment on the growing plastics crisis. Please click on the 60 Minutes logo or follow the link and go to the 28 minute mark to view.
https://www.cbs.com/shows/60_minutes/video/__dt0TtfaITM_evNCW73zqWGRjRVNLC6/taking-aim-at-opioids-plastic-plague/
For investor related questions, please feel free to reach out anytime. Thank you for your continued support.
Jason
LR Advisors
678-570-6791
As I said, no one is banning plastic. You are siting a few restrictions of a VERY small section of plastic usage in a few small counties. Now that there is a solution to this problem, you will see even fewer of these bans. Do your research!
I'm not a short seller - do some research
Plastic use bans
Plastic bags and bottles
Any shorts going up against the likes of Coke, Pepsi, Danone, Evian and the like have pretty big gonads........ soon to be turned into raisins.
I love raisins!
The JV plant with Indorama will be built next year. Revenue will commence, and I'm sure, many more plants will follow... How many "pre-revenue" companies have gone on to make huge profits?
"Mr. Dever and Danone executives had the process tested at Loop’s pilot plant—bringing their own waste plastic secretly tagged with a tracer to make sure that the returned samples were of the same material. They had the tests repeated with different types of waste, including carpet fibers and colored plastic. “We tried to stretch to the max the Loop technology by giving them materials we couldn’t use,” said Frederic Jouin, R&D packaging head for Danone Waters. The resulting samples, once turned into bottles in France, met Danone’s quality standards."
THANK YOU....WE already knew the technology worked and was able to be scaled through their Canadian plant. The shorts (even the ones that say that they are not shorts) only want to disseminate their narrative for their own agenda.
Once the JV plant with Indorama is in production and is generating revenue, all the shorts will be singing a different tune!!!
Dear Friends and Fellow Loop Industries (Nasdaq: LOOP) Shareholders,
Thank you to the Wall Street Journal and author Saabira Chaudhuri for including us in the article “Plastic Water Bottles, Which Enabled a Drinks Boom, Now Threaten a Crisis”
https://www.wsj.com/articles/bottled-water-americas-most-popular-drink-has-a-plastic-problem-11544627923?shareToken=stef7c3093f52f49999acf29134a473617&ref=article_email_share0
"Mr. Dever and Danone executives had the process tested at Loop’s pilot plant—bringing their own waste plastic secretly tagged with a tracer to make sure that the returned samples were of the same material. They had the tests repeated with different types of waste, including carpet fibers and colored plastic. “We tried to stretch to the max the Loop technology by giving them materials we couldn’t use,” said Frederic Jouin, R&D packaging head for Danone Waters. The resulting samples, once turned into bottles in France, met Danone’s quality standards."
For investor related questions, please feel free to reach out anytime. Thank you for your continued support.
Jason
LR Advisors
678-570-6791
Hold on...... the insiders and ceo background and selling intentions is fact!!!
The lack of money and ability to raise substantial money is FACT( 2 offerings cancelled,)their two million raised in form of convertible will barely get them till feb 1....
Dilution coming ? FACT
Bankruptcy? Now that’s exaggerated !!,
Technology? I’m no expert!!! Now Danone supposedly sent in recycled material and they got back a Great recycled product....Mr chow from seeking alpha, talks about recovery rate and MEG etc, and I’m no engineer, nor are you I am assuming, so here, the jury is out....
It is also a fact that this technology was bought 3 years ago for roughly 1 million dollars and it is true that company is trading for 300 million dollars with no revenue and no plant!!!! This is my summary and I am. Not short, nor long at this moment!!!
SHORT seller scare tactics. Filled with lies and misrepresentations!!!
REALLY? What countries have banned plastic containers? Plastic is so thoroughly integrated in our economy, it would be IMPOSSIBLE to ban it! More Short seller scare tactics.
SHORT SCARE TACTICS filled with misrepresentations, half truths and outright lies!
It is sad, but with many countries banning the use of plastic containers completely, the technology is here, but maybe too late ? Not sure. But what is certain, they definitely need to have the capital, the pipeline to/from companies and recycling, along with governments/states who wish to make this a priority. $4/share - OUCH.
For what it’s worth, my 2 cents, I think the writer of the article is 100 per cent right, as I always maintained that’s all these polluters like coke and, Pepsi are only glad to sign an agreement that has to do with recycling , wether it works or not or even feasible..WHERE DO I SIGN!!! On the technology? No idea? his word versus LOOP... on the insiders? He is stating facts, especially they all are listed to sell shares and have BEEN UNSUCCESSFUL to raise capital..... other than their 2 million plus which should be gone by Jan 15 th.... he uses word bankruptcy , being around the corner? I doubt it. Not that it can’t go bankrupt, geez, I saw a tech co. on Nasdaq trade for 1.5 billion night before and never opened for trading next day....
I think that ceo and family will try to get something going here , maybe though a final raise of capital , coincidentally with these drop in market price, say at 4 dollars a share....
I wish you luck.
You are good trader..,,,, I have hard time getting filled on either side oh well... down to last 1k.... hope for a bounce or punch out 5 .99...thats one heavy article......
It surely shows now. Flipped a few times for small gains. Been out just watching the past 2 weeks. Not looking too good is it?
I think people cared more about the seeking alpha negative report , challenging technology as well as citing poor financial health of the company!
As for the news , until money is raised and there is a business plan to recycle successfully x at a certain cost and sell it a reasonable price and make profits, nothing happening... remember , every polluter, or bottler is interested in press releases stating that they are willing to recycle and buy recycle plastic..... yet I would not short this stock for one second.
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