Loop Industries Enters into Amended Share Purchase Agreement with Reed Management SAS, Creating Loop Europe

Loop Industries, Inc. recently announced the signing of an Amended and Restated Share Purchase Agreement with Reed Management SAS, which marks a significant step in the company’s strategic initiatives. The agreement, entered into on December 12, 2024, modifies the original Share Purchase Agreement dated May 30, 2024. This development was disclosed in a current report filed by the company with the Securities and Exchange Commission.

Under the terms of the Amended Agreement, Loop Industries will sell and issue convertible preferred stock of the Company to Loop Europe, a newly established simplified joint-stock company under French law. Loop Europe is expected to be primarily owned by Reed (90%) and Loop Industries (10%). This financial arrangement will involve the sale and issuance of convertible preferred stock for gross proceeds totaling €10 million. Additionally, a simultaneous issuance of corporate bonds by Loop Europe to Reed in the same amount is part of the agreement.

The completion of the transactions outlined in the Amended Agreement is contingent upon standard closing conditions. These include the finalization of Loop Europe’s incorporation process and the execution of all related transaction documents. Loop Industries anticipates that this process will conclude within seven business days following the incorporation of Loop Europe.

Moreover, Loop Industries highlighted the importance of these transactions by emphasizing the expected benefits and outcomes. While expressing optimism about the timely closure of the proposed transactions, the Company acknowledged the presence of inherent risks and uncertainties associated with such endeavors. Loop Industries remains attentive to factors that may influence the realization of the planned transactions, including potential delays in the incorporation of Loop Europe and the fulfillment of closing conditions stipulated in the Amended Agreement.

As mandated by the securities laws, Loop Industries included a section on forward-looking statements in its filing. This cautionary note addresses the uncertainty inherent in such projections and recognizes the possibility of variations between anticipated results and actual outcomes. Loop Industries articulated its commitment to periodic updates on these forward-looking statements, in adherence to legal obligations.

The successful execution of these transactions could potentially position Loop Industries favorably in its ongoing business endeavors, driving growth, market expansion, and strategic collaborations. For further details on Loop Industries’ financial and operational activities, including risks and potential outcomes, reference should be made to the Company’s filings submitted to the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Loop Industries’s 8K filing here.

Loop Industries Company Profile

Loop Industries, Inc, a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks.