Loop Industries Closes Transactions with Reed Management SAS, Secures EUR 20 Million in Preferred Stock Financing and Licensing Deal

Loop Industries, Inc. recently concluded a series of significant transactions with Reed Management SAS, as disclosed in a current report filed with the Securities and Exchange Commission on December 19, 2024. The agreements, finalized on December 23, 2024, involved a preferred stock financing transaction and a licensing deal with Reed Circular Economy (RCE), a subsidiary of Reed Management SAS.

The transactions resulted in Loop Industries receiving EUR 20,000,000 in proceeds from the preferred stock financing and licensing agreement. The company intends to utilize these funds for general corporate purposes and furthering the commercialization of its innovative technology. Moreover, Loop Industries aims to establish a Securityholders Agreement with RCE, outlining the governance, ownership, and operational framework for the European joint venture, Infinite Loop Europe SAS, once incorporation is completed.

Securities Purchase Agreement and Investors Rights Agreement
Under the Securities Purchase Agreement, Loop Industries issued and sold 1,044,430 shares of Series B Convertible Preferred Stock to RCE at a per share price of USD 10.00, amounting to approximately EUR 10,000,000. Additionally, an Investors Rights Agreement was signed, outlining various provisions including resale registration rights, standstill provisions, lock-up periods, and voting arrangements.

License Agreement
Loop Industries entered into a License Agreement with RCE, granting the JV a non-transferable, royalty-bearing license to employ Loop’s proprietary depolymerization technology for a facility in Europe to produce and distribute licensed products. Further facilities will necessitate separate licensing agreements, with sublicensing available to a single third-party operator subject to the agreement’s stipulations and Loop’s oversight.

Series B Convertible Preferred Stock
The 8-K filing also detailed key specifics of the Series B Convertible Preferred Stock, including dividend entitlements, voting rights, conversion terms, and redemption options based on specific triggering events or defaults.

The filing disclosed Loop Industries’ submission of the Certificate of Designation to the State of Nevada on December 19, 2024, delineating the terms and rights associated with up to 5,000,000 shares of Series B Convertible Preferred Stock. Holders of the Series B stock will benefit from dividends, conversion rights, voting privileges, and redemption opportunities tied to significant corporate events.

This comprehensive filing provides shareholders and stakeholders with crucial information regarding Loop Industries’ recent transactions and the ensuing impact on its financial and operational outlook.

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.