Loop Industries, Inc.
15.7.2021 22:56:28 CEST | ACCESS Newswire | Press release
MONTREAL, QC / ACCESSWIRE / July 15, 2021 / Loop Industries, Inc. (NASDAQ:LOOP) (the "Company" or "Loop"), a clean technology company focused on accelerating a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today provided an update on its activities, and reported its consolidated financial results for the first quarter of fiscal year 2022.
SK global chemical Strategic Partnership and Equity Investment
On June 23, 2021, Loop announced announced that it intends to form a strategic partnership with SK global chemical Co. Ltd. ("SKGC"), a subsidiary of South Korea's SK Group, one of Asia's largest conglomerates, to accelerate the commercialization of Loop's sustainable PET plastic and polyester fiber manufacturing technology throughout Asia. Loop and SKGC intend to form a joint venture with exclusivity to build sustainable food-grade PET resin and polyester fiber manufacturing facilities throughout Asia to support global brand companies. Under the terms of the Memorandum of Understanding ("MOU") for the proposed joint venture, SKGC will own 51 percent of the joint venture and Loop will own 49 percent. Loop will also receive a recurring annual royalty fee as a percentage of revenue from each facility for the use of its technology.
In addition, Loop and SKGC have entered into a definitive agreement for SKGC to become a strategic investor in Loop. SKGC will purchase 4,714,813 new treasury common shares of Loop at a price of $12 per share, for total consideration of $56.5 million. SKGC was also granted options to acquire additional shares at successively higher prices, as well as representation on Loop's Board of Directors. Closing of the strategic equity investment will be as soon as practical and no later than 90 days from the June 23, 2021 announcement.
Infinite Loop™ Quebec Project
On May 27, 2021, Loop acquired a 19 million square foot parcel of land in Bécancour, Québec for approximately $4.9 million. The site is located near existing industrial infrastructure, which reduces project costs, permitting time and does not result in the destruction of wetlands or forest. Loop intends to use the proceeds from SKGC's strategic investment toward the funding of its planned Infinite Loop™ manufacturing facility at this recently acquired site.
Management Commentary
Daniel Solomita, Founder and CEO of Loop Industries, said: "As we begin collaboration with our valued partners at SK global chemical, we look forward to accelerating the global commercialization of our sustainable PET plastic manufacturing technology. With an initial investment in four projected facilities in North America, Europe and Asia, including Joint Ventures with Indorama and SUEZ, Loop is well positioned to meet the growing global demand for 100% recycled PET plastic and polyester fiber."
First Quarter Ended May 31, 2021
The following table summarizes our operating results for the three-month periods ended May 31, 2021 and 2020, in U.S. Dollars.
| Three months ended May 31, | ||||||||||||
| 2021 | 2020 | Change | ||||||||||
Revenues | $ | - | $ | - | $ | - | ||||||
Expenses | ||||||||||||
Research and development | ||||||||||||
Stock-based compensation | 395,545 | 352,007 | 43,538 | |||||||||
External engineering | 2,903,448 | 74,932 | 2,828,516 | |||||||||
Employee compensation | 1,690,583 | 467,041 | 1,223,542 | |||||||||
Machinery and equipment expenditures | 2,622,892 | - | 2,622,892 | |||||||||
Demonstration plant operating expenses | 691,537 | 286,103 | 405,434 | |||||||||
Other | 333,900 | 300,505 | 33,395 | |||||||||
Total research and development | 8,637,905 | 1,480,588 | 7,157,317 | |||||||||
General and administrative | ||||||||||||
Stock-based compensation | (383,630 | ) | 659,817 | (1,043,447 | ) | |||||||
Professional fees | 1,631,451 | 221,697 | 1,409,754 | |||||||||
Employee compensation | 845,035 | 483,034 | 362,001 | |||||||||
Directors and officers insurance | 868,647 | 473,574 | 395,073 | |||||||||
Other | 199,068 | 114,959 | 84,109 | |||||||||
Total general and administrative | 3,160,571 | 1,953,081 | 1,207,490 | |||||||||
Depreciation and amortization | 132,001 | 255,974 | (123,973 | ) | ||||||||
Interest and other financial expenses | 30,588 | 126,776 | (96,188 | ) | ||||||||
Interest income | (9,761 | ) | (40,346 | ) | 30,585 | |||||||
Foreign exchange loss | 206,060 | 76,641 | 129,419 | |||||||||
Total expenses | 12,157,364 | 3,852,714 | 8,304,650 | |||||||||
Net loss | $ | (12,157,364 | ) | $ | (3,852,714 | ) | $ | (8,304,650 | ) | |||
First Quarter Ended May 31, 2021
The net loss for the three-month period ended May 31, 2021 increased $8.30 million to $12.16 million, as compared to the net loss for the three-month period ended May 31, 2020 which was $3.85 million. The increase is primarily due to increased research and development expenses of $7.16 million, increased general and administrative expenses of $1.21 million, an increase in foreign exchange loss of $0.13 million and a decrease in interest income of $0.03 million, partially offset by lower depreciation and amortization expenses of $0.12 million and lower interest and other financial expenses of $0.1 million.
The $7.16 million increase in research and development for the three-month period ended May 31, 2021 was primarily attributable to the following:
- $2.83 million increase in external engineering expenses for ongoing design work for our Infinite Loop TM manufacturing process;
- $2.62 million increase in purchases of research and development machinery and equipment. Starting in Q3 of fiscal 2021, we expense research and development machinery and equipment in accordance with ASC 730, Research and Development Costs, and no longer capitalize these costs. The timing of this accounting treatment is related to management's decision to convert our pilot plant to exclusively a demonstration and training facility for our future Infinite Loop™ manufacturing facilities, therefore foregoing any alternative future use of its machinery and equipment assets in other applications;
- $1.2 million increase in employee compensation expenses due to an increase in hiring; and
- $0.41 million increase in demonstration plant and laboratory operating expenses due to increased activity at our demonstration plant.
The $1.21 million increase in general and administrative expenses for the three-month period ended May 31, 2021 was primarily attributable to the following:
- $1.41 million increase in expenses for legal and professional fees due to costs principally associated with the ongoing SEC investigation and class action suits described in "Part II, Item 1. Legal Proceedings";
- $0.40 million increase in insurance expenses mainly due to directors and officers ("D&O") insurance renewal costs; and
- $0.36 million increase in employee compensation expenses due to an increase in hiring.
The listed increases in general and administrative expenses were partially offset by lower stock-based compensation expenses of $1.04 million which are mainly due to forfeitures of RSUs recorded in the three-month period ended May 31, 2021 for a total of $0.94 million.
The $0.12 million decrease in depreciation and amortization expenses for the three-month period ended May 31, 2021 is mainly attributable to the write-down of machinery and equipment assets related to the decision in the third quarter of fiscal 2021 to dedicate the demonstration and training facility to research and development activities. Although the machinery and equipment will continue to be utilized at our demonstration and training facility as it is an integral part of supporting the commercialization of our technology, application of ASC 730, Research and Development Costs requires machinery and equipment assets to be written off and all future costs associated with the demonstration and training facility to be recognized as a research and development expense in the consolidated statements of operations and comprehensive loss.
The $0.12 million increase in foreign exchange loss for the three-month period ended May 31, 2021 is mainly due to the fluctuation in USD/CAD exchange rates. The $0.10 million decrease in interest and other financial expenses for the three-month period ended May 31, 2021 is mainly due to the loss on revaluation of foreign exchange contracts in the three-month period ended May 31, 2020 which was nil in the three-month period ended May 31, 2021. The $0.03 million decrease in interest income for the three-month period ended May 31, 2021 is mainly due to lower interest rates as well as lower cash balances on which we receive interest.
Loop Industries, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
| Three Months Ended | ||||||||
| May 31, 2021 | May 31, 2020 | |||||||
Revenue | $ | - | $ | - | ||||
Expenses : | ||||||||
Research and development | 8,637,905 | 1,480,588 | ||||||
General and administrative | 3,160,571 | 1,953,081 | ||||||
Depreciation and amortization | 132,001 | 255,974 | ||||||
Interest and other financial expenses | 30,588 | 126,776 | ||||||
Interest income | (9,761 | ) | (40,346 | ) | ||||
Foreign exchange loss (gain) | 206,060 | 76,641 | ||||||
Total expenses | 12,157,364 | 3,852,714 | ||||||
Net loss | (12,157,364 | ) | (3,852,714 | ) | ||||
Other comprehensive loss - | ||||||||
Foreign currency translation adjustment | 206,815 | (170,412 | ) | |||||
Comprehensive loss | $ | (11,950,549 | ) | $ | (4,023,126 | ) | ||
Loss per share | ||||||||
Basic and diluted | $ | (0.29 | ) | $ | (0.10 | ) | ||
Weighted average common shares outstanding | ||||||||
Basic and diluted | 42,433,107 | 39,916,838 | ||||||
Loop Industries, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
As at | ||||||||
May 31, 2021 | February 28, 2021 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 18,037,062 | $ | 35,221,951 | ||||
| Sales tax, tax credits and other receivables | 1,551,702 | 1,763,835 | ||||||
| Prepaid expenses | 1,978,390 | 609,782 | ||||||
Total current assets | 21,567,154 | 37,595,568 | ||||||
Investment in joint venture | 1,500,000 | 1,500,000 | ||||||
| Property, plant and equipment, net | 8,569,606 | 3,513,051 | ||||||
| Intangible assets, net | 881,223 | 794,894 | ||||||
Total assets | $ | 32,517,983 | $ | 43,403,513 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 9,057,423 | $ | 8,124,865 | ||||
| Current portion of long-term debt | 971,257 | 938,116 | ||||||
Total current liabilities | 10,028,680 | 9,062,981 | ||||||
| Long-term debt | 1,614,971 | 1,516,008 | ||||||
Total liabilities | 11,643,651 | 10,578,989 | ||||||
| Stockholders' Equity | ||||||||
| Series A Preferred stock | - | - | ||||||
| Common stock | 4,244 | 4,242 | ||||||
| Additional paid-in capital | 113,663,032 | 113,662,677 | ||||||
| Additional paid-in capital - Warrants | 8,826,165 | 8,826,165 | ||||||
| Accumulated deficit | (101,819,334) | (89,661,970) | ||||||
| Accumulated other comprehensive loss | 200,225 | (6,590) | ||||||
Total stockholders' equity | 20,874,332 | 32,824,524 | ||||||
Total liabilities and stockholders' equity | $ | 32,517,983 | $ | 43,403,513 | ||||
Loop Industries, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended May 31, | ||||||||
| 2021 | 2020 | |||||||
Cash Flows from Operating Activities | ||||||||
Net loss | $ | (12,157,364 | ) | $ | (3,852,714 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 132,001 | 256,090 | ||||||
Stock-based compensation expense | 15,357 | 1,011,824 | ||||||
Accretion and accrued interest expenses | 21,408 | 17,963 | ||||||
Loss on revaluation of foreign exchange contracts | - | 98,502 | ||||||
Changes in operating assets and liabilities: | ||||||||
Sales tax and tax credits receivable | 287,116 | 76,410 | ||||||
Prepaid expenses | (1,326,519 | ) | (1,865,216 | ) | ||||
Accounts payable and accrued liabilities | 622,443 | (720,759 | ) | |||||
Net cash used in operating activities | (12,405,558 | ) | (4,977,900 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Investment in joint venture | - | (650,000 | ) | |||||
Additions to property, plant and equipment | (4,867,007 | ) | (394,403 | ) | ||||
Additions to intangible assets | (52,319 | ) | (144,386 | ) | ||||
Net cash used in investing activities | (4,919,326 | ) | (1,188,789 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Repayment of long-term debt | (14,496 | ) | (12,693 | ) | ||||
Net cash (used) provided by financing activities | (14,496 | ) | (12,693 | ) | ||||
Effect of exchange rate changes | 154,491 | (29,534 | ) | |||||
Net decrease in cash | (17,184,889 | ) | (6,208,916 | ) | ||||
Cash, beginning of period | 35,221,951 | 33,717,671 | ||||||
Cash, end of period | $ | 18,037,062 | $ | 27,508,755 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Income tax paid | $ | - | $ | - | ||||
Interest paid | $ | 9,178 | $ | 10,311 | ||||
Interest received | $ | 9,761 | $ | 40,346 | ||||
About Loop Industries
Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpets and textiles of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop Industries is contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future.
Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP."
For more information, please visit www.loopindustries.com . Follow Loop on Twitter: @loopindustries , Instagram: loopindustries , Facebook: Loop Industries and LinkedIn: Loop Industries
Forward-Looking Statements
This news release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends", "may", "will", "plans", "expects", "anticipates", "should", "could", "projects", "predicts", "estimates", "aims", "believes", "hopes", "potential" or "continute" the negative of such terms or similar words. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, ability to improve and expand our capabilities, competition, expected activities and expenditures as we pursue our business plan, the adequacy of our available cash resources, regulatory compliance, plans for future growth and future operations, the size of our addressable market, market trends, and the effectiveness of the Company's internal control over financial reporting. 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 among other things: (i) commercialization of our technology and products, (ii) our status of relationship with partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding, (vi) building our manufacturing facility, (vii) our ability to scale, manufacture and sell our products in order to generate revenues, (viii) our proposed business model and our ability to execute thereon, (ix) adverse effects on the Company's business and operations as a result of increased regulatory, media or financial reporting scrutiny and practices, rumors or otherwise, (x) disease epidemics and health related concerns, such as the current outbreak of a novel strain of coronavirus (COVID-19), which could result in (and, in the case of the COVID-19 outbreak, has resulted in some of the following) reduced access to capital markets, supply chain disruptions and scrutiny or embargoing of goods produced in affected areas, government-imposed mandatory business closures and resulting furloughs of our employees, government employment subsidy programs, travel restrictions or the like to prevent the spread of disease, and market or other changes that could result in noncash impairments of our intangible assets, and property, plant and equipment, (xi) the outcome of the current SEC investigation or recent class action litigation filed against us, (xii) our ability to hire and/or retain qualified employees and consultants and (xiii) other factors discussed in our subsequent filings with the SEC. 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.
For More Information:
Media Inquiries:
Stephanie Corrente
Loop Industries, Inc.
+1 (450) 951-8555
scorrente@loopindustries.com
Investor Inquiries:
Greg Falesnik
MZ Group-MZ North America
+1 949-259-4987
LOOP@mzgroup.us
www.mzgroup.us
SOURCE: Loop Industries, Inc.
View source version on accesswire.com:
https://www.accesswire.com/655686/Loop-Industries-Provides-Business-Update-and-Reports-First-Quarter-Financial-Results-of-Fiscal-Year-2022
To view this piece of content from www.accesswire.com, please give your consent at the top of this page.
About ACCESS Newswire
Subscribe to releases from ACCESS Newswire
Subscribe to all the latest releases from ACCESS Newswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from ACCESS Newswire
Formerra Announces Transportation Surcharge to Address Ongoing Freight and Logistics Market Pressures25.3.2026 21:00:00 CET | Press release
CLEVELAND, OH / ACCESS Newswire / March 25, 2026 / Formerra, a leader in performance materials distribution, announced the implementation of a transportation surcharge to address continued cost escalation across the Americas freight and logistics market. Beginning April 1, 2026, a $350 per delivery surcharge will apply to all shipments. The freight and logistics market continues to experience elevated costs driven by rising diesel prices, evolving regulatory requirements affecting driver availability, tighter trucking capacity, and increasing operating expenses across the logistics sector. Industry forecasts indicate these pressures will persist for the foreseeable future. "Maintaining reliable service for our customers requires us to adapt to sustained shifts in the transportation landscape," said Tom Kelly, Formerra CEO. "This surcharge is necessary to address these industrywide cost pressures that are outside of our control while continuing to provide the high service levels custome
Vehicle Tech Week Europe announces Strategic Partnerships with PAVE Europe, ASAM and FISITA, Strengthening its Position as the Global Meeting Point for Future Vehicle Innovation25.3.2026 17:15:00 CET | Press release
STUTTGART, DE / ACCESS Newswire / March 25, 2026 / UKi Media & Events, the organizer of Vehicle Tech Week Europe today announced new strategic partnerships with PAVE Europe (Partners for Automated Vehicle Education), ASAM (Association for Standardization of Automation and Measuring Systems) and FISITA (Fédération Internationale des Sociétés d'Ingénieurs des Techniques de l'Automobile). These alliances reinforce the event's role as a key global hub for the technologies shaping the next era of vehicle mobility. Launching in Stuttgart, Germany, June 23-25, 2026, Vehicle Tech Week Europe brings together three of UKi Media & Events' leading shows - Automotive Testing Expo, Autonomous Vehicle Tech Expo, and Automotive Interiors Expo - into one integrated platform designed to meet the needs of an increasingly convergent industry. Partnerships that broaden expertise and industry alignment PAVE Europe, ASAM and FISITA bring deep experience across engineering, automation, safety, simulation, tes
Lithium Measurement MR-Technology Provider NanoNord Expands Business with DLE Leader ElectraLith, Following Danish State Visit to Australia25.3.2026 13:30:00 CET | Press release
Danish company expands collaboration with Australian deeptech rising star during the Royal State Visit to Melbourne AALBORG, DENMARK AND MELBOURNE, AU / ACCESS Newswire / March 25, 2026 / The North Jutland technology company NanoNord has, in connection with the Royal Couple's state visit to Australia, secured an order for additional measurement equipment valued at between 160k - 240k AUD from the Australian deeptech pioneer ElectraLith. The order underscores the growing international potential for Danish measurement technology in the green transition. NanoNord was part of the business delegation during the state visit and seized the opportunity to strengthen its business with both existing and new customers in Australia. It is not the first time the Danish Royal Family has been close to NanoNord - the company was originally officially inaugurated by a then-young Crown Prince Frederik. Danish Technology Measures Lithium in Real Time NanoNord's flagship technology, Tveskaeg, is an MR-bas
Rancho BioSciences Appoints Chris O'Brien as CEO to Deliver AI-Ready Data Solutions for Faster, More Reliable R&D25.3.2026 13:00:00 CET | Press release
Veteran life sciences leader to drive enterprise growth and expand adoption of AI-ready data solutions across pharma and biotech SAN DIEGO, CA / ACCESS Newswire / March 25, 2026 / Rancho BioSciences today announced the appointment of Chris O'Brien as Chief Executive Officer. O'Brien will lead the company's next phase of growth as Rancho expands adoption of its AI-ready data solutions across pharmaceutical, biotechnology, and research organizations. Rancho BioSciences delivers AI-ready data solutions that transform fragmented biomedical data into standardized, reusable assets for AI, analytics, and machine learning. As life sciences organizations continue investing in AI and advanced analytics, preparing inconsistent and siloed data remains a major bottleneck-often slowing analysis and limiting reuse across programs. Rancho addresses this by standardizing and harmonizing complex data so it can be used immediately and consistently across the R&D lifecycle. O'Brien brings more than 20 yea
Datavault AI Partners with Rising British Heavyweight Moses Itauma25.3.2026 13:00:00 CET | Press release
21-Year-Old Boxing Phenom to Showcase Datavault AI Brand in Manchester Showdown Against Jermaine Franklin PHILADELPHIA, PA / ACCESS Newswire / March 25, 2026 / Datavault AI Inc. ("Datavault AI" or the "Company") (NASDAQ:DVLT), a provider of data monetization, credentialing, digital engagement, and real-world asset ("RWA") tokenization technologies, today announced that it has entered into a partnership agreement with undefeated British heavyweight boxing sensation Moses Itauma. The 21-year-old Commonwealth champion's highly anticipated bout against Jermaine Franklin will be on March 28, 2026, at the Co-op Live Arena in Manchester, England, and will be broadcast globally on DAZN. The partnership reflects Datavault AI's strategic focus on elite combat sports talent as the Company builds out its athlete name, image, and likeness ("NIL") digital asset exchange platform, being developed in exploratory collaboration with Sports Illustrated. Itauma (13-0, 11 KOs) is widely regarded as one of
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom
