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8-K - CURRENT REPORT - Loop Industries, Inc. | lp_8k.htm |
Exhibit 99.1
Loop Industries and SK global chemical Close $56.5M Strategic
Equity Deal, Provide Further Update on Asian Joint Venture to
Manufacture 100% Recycled PET Plastic
●
$56.5 M purchase of
new treasury common shares of Loop Industries at $12 per share,
pursuant to the agreement announced by the two companies on June
23, 2021
●
Joint venture to
begin planning phase for first Infinite Loop™ facility in
Ulsan, South Korea, with a minimum of four manufacturing facilities
planned by 2030
●
Mr. Jonghyuk Lee
appointed to Loop’s Board of Directors
Montréal (Canada)/ACCESSWIRE/ August 2,
2021/Loop Industries
(Nasdaq: LOOP) (“Loop” or “The Company”), a
leading innovator in clean technology whose mission is to
accelerate a circular plastics economy and SK global chemical Co.
Ltd. (“SKGC”), a subsidiary of South Korea’s SK
Group, announce the closing of a $56.5 million purchase of new
treasury common shares of Loop Industries at $12 per share and
warrants to purchase common shares, pursuant to the agreement which
was announced by the two companies on June 23, 2021. SKGC now owns
10 percent of Loop’s common shares.
The
strategic partnership between the companies intends to accelerate
the commercialization of Loop’s technology throughout Asia to
supply global CPG brand companies with virgin quality PET resin and
polyester fiber made from 100% recycled material. Starting with a
first facility in Ulsan, South Korea, expected to begin preparation
in 2022, the joint venture intends to build a minimum of four
facilities by 2030. Combined, these facilities are expected to
process approximately 400,000 tons of PET plastic and polyester
fiber waste annually.
Appointment of Jonghyuk Lee to Loop’s Board of
Directors
In conjunction with the equity investment, Mr.
Jonghyuk Lee, Vice President of
SKGC’s Green Business Division, has been appointed to
Loop’s Board of Directors, effective immediately. This
appointment reflects SKGC’s strategic view of the importance
of its investment in Loop, as part of its “Green for Better
Life” global strategic vision.
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
owns patented and proprietary technology that depolymerizes no and
low-value waste PET plastic and polyester fiber, including plastic
bottles andpackaging, 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 and polyester
fiber suitable for use in food-grade packaging, thus enabling our
customers to meet their sustainability objectives. Loop Industries
is contributing to the global movement towards a circular economy
by preventing plastic waste and recovering waste plastic for a more
sustainable future for all.
Common
shares of Loop Industries are listed on the Nasdaq Global Market
under the symbol “LOOP.”
For
more information, please visit www.loopindustries.com. Follow us on
Twitter: @loopindustries
Instagram: loopindustries,
Facebook: Loop
Industries and LinkedIn: Loop Industries
About SK global chemical
In
1972, SK global chemical laid the foundation for the development of
petrochemical industry by operating the first naphtha-cracking
facility in Korea. SK global chemical provides various automotive
& packaging products and solutions that customers and markets
require. Furthermore SK global chemical is growing into a
technology-based global chemical company through continuous R&D
efforts and global expansion.
SK
global chemical will achieve its vision, “Green for Better
Life”, by establishing a plastics based circular economy by
collaborating with various partners and stakeholders. SK global
chemical will expand its portfolio of eco-friendly products and
will continuously recycle beyond the amount of plastics produced in
order to realize and leverage the sustainability efforts that will
benefit our planet.
For
more information, please visit www.skglobalchemical.com.
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 changesthat 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.
Media Contact
Loop Industries
Stephanie Corrente, Director of Marketing &
Communications
+1 (450) 951-8555
ext. 226
scorrente@loopindustries.com
SK global chemical
Joon young Jeong, Professional Manager
SK Innovation | Value Creation Center
Media PR - Battery
business
010-7659-5699
jay.jung@sk.com
Loop Industries Investor Relations
MZ Group—MZ North America
+1 (949) 259-4987
LOOP@mzgroup.us
www.mzgroup.us