Attached files
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|---|---|
| 8-K - CURRENT REPORT - Loop Industries, Inc. | lpi_8k.htm |
Exhibit 99.1
MONTREAL, January 14, 2021 (ACCESSWIRE)—Loop
Industries, Inc. (NASDAQ: LOOP) (the “Company” or
“Loop Industries”), a leading sustainable
plastics technology innovator, today announced its
consolidated financial results for the third quarter of the fiscal
year ending February 28, 2021 and provided an update on its
continuing progress in implementing its business plan.
Highlights
●
Initiated the work
with SUEZ on European Infinite LoopTM
project.
●
Initiated
conversion of the Company’s Pilot Plant to a demonstration
and training facility in support of Infinite LoopTM
commercialization.
●
Independent
verification report published attesting to the capacity of our
technology to produce DMT and MEG monomers within our purity
specifications.
●
Received
confirmation of registration for our DMT and MEG monomers for
Europe.
In the
quarter, we continued to focus on the completion of the engineering
of the Infinite LoopTM
manufacturing process, including the integration of our
depolymerization process with INVISTA’s polymerization know
how, with the assistance of Worley Group, a leading global
engineering, procurement and construction company, and Chemtex
Global Corporation.
We also
initiated work in the quarter on our planned European facility with
Suez, a world leader in environmental services. To support this
project and the Company’s European business activities, the
Company has hired Laurent Auguste, a former senior executive of
Veolia, in an advisory capacity.
In
connection with our agreements with SUEZ and Chemtex, and more
broadly with the commercialization activities of future Infinite
LoopTM
manufacturing facilities, we have decided to convert our pilot
plant to an Infinite LoopTM
demonstration and training facility in support of the
commercialization of our technology. The demonstration facility
will be used to showcase the Infinite LoopTM
technology to potential partners and customers, and train
operational teams in advance of the commissioning of commercial
plants. We made investments of $2,325,540 for this project during
the three months ended November 30, and we expect this project to
be largely completed by third quarter of calendar 2021. In
addition, subsequent to the quarter, we have also entered into an
agreement to acquire PET polymerization equipment from Chemtex to
manufacture limited quantities of Loop™ branded PET resin at
our demonstration plant and have the capability to supply product
to select customers.
During
the quarter, we commissioned Kemitek, a College Centre for
Technology Transfer specialized in the fields of green chemistry
and chemical process scale-up, to validate that our technology at
mini-pilot and pilot scale can produce primary building blocks, or
monomers: DMT and MEG. Their report concluded that the quality of
the monomers meets Loop Industries’ specifications for the
production of PET resin and polyester fiber.
In
addition, we recently received a confirmation of registration for
our DMT, and MEG monomers from the European Chemicals Agency
confirming that our monomers are of a purity equal to what is
currently recognized within Europe and entitling us to manufacture
and import the monomers into Europe for use as food contact
materials.This confirmation comes in addition to our previously
disclosed a legal opinion confirming that our depolymerization
technology meets U.S. Food and Drug Administration
(“FDA”) requirements to produce suitably pure DMT and
MEG for use in food-grade packaging.
Our
joint venture with Indorama decided over the summer that due to the
COVID-19 situation it would temporarily delay work on the
Spartanburg project. During the quarter continued COVID-related
travel restrictions and quarantine requirements between Canada and
the U.S. continued to cause disruptions in our timetable. The joint
venture plans to resume certain activities in the first quarter of
calendar 2021.
The
Company is in the planning phase for an Infinite LoopTM
manufacturing facility in the province of Québec. As part of
this process, subsequent to the end of the quarter, the Company
signed a purchase option to acquire approximately 2,000,000 square
feet of land in Bécancour, Québec.
Results of Operations
The
following table summarizes our operating results for the
three-month periods ended November 30, 2020 and 2019, in U.S.
dollars.
|
|
Three
Months Ended November 30
|
||
|
|
2020
|
2019
|
$
Change
|
|
Revenues
|
$-
|
$-
|
$-
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Research and
development
|
|
|
|
|
Stock-based
compensation
|
350,393
|
311,353
|
39,040
|
|
Other
research and development
|
5,923,890
|
966,819
|
4,957,071
|
|
Total
research and development
|
6,274,283
|
1,278,172
|
4,996,111
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
Stock-based
compensation
|
546,601
|
565,440
|
(18,839)
|
|
Other
general and administrative
|
2,177,415
|
1,260,373
|
917,014
|
|
Total
general and administrative
|
2,724,016
|
1,825,813
|
898,203
|
|
|
|
|
|
|
Write-down and
impairment of property, plant and equipment
|
5,034,606
|
-
|
5,034,606
|
|
Depreciation and
amortization
|
104,307
|
219,628
|
(115,321)
|
|
Interest and other
financial (income) expenses
|
(41,855)
|
693,027
|
(734,882)
|
|
Interest
income
|
(20,008)
|
(171,274)
|
151,266
|
|
Foreign exchange
loss
|
95,644
|
5,533
|
90,111
|
|
Total
operating expenses
|
14,170,993
|
3,850,899
|
10,320,094
|
|
Net
loss
|
$(14,170,993)
|
$(3,850,899)
|
$(10,320,094)
|
Third Quarter Ended November 30, 2020
The net
loss for the three-month period ended November 30, 2020 increased
$10.32 million to $14.17 million, as compared to the net loss for
the three-month period ended November 30, 2019 which was $3.85
million. The increase of $10.32 million is primarily
attributable to higher research and development expenses of $5.00
million, the write-down and impairment of machinery and equipment
of $5.03 million, higher general and administrative expenses of
$0.90 million, lower interest income of $0.15 million, and an
increase in foreign exchange loss of $0.09 million, offset by lower
interest and other financial (income) expenses of $0.73 million and
lower depreciation and amortization expenses of $0.12
million.
Research
and development expenses for the three-month period ended November
30, 2020 amounted to $6.27 million compared to $1.28 million for
the three-month period ended November 30, 2019, an increase of
$5.00 million, or $4.96 million excluding stock-based compensation.
The increase of $4.96 million was primarily attributable to higher
purchases of non-capitalizable research and development machinery
and equipment of $2.33 million, higher engineering fees of $2.19
million due to external engineering costs for our Infinite
LoopTM
manufacturing process, higher employee compensation expenses of
$0.20 million, higher pilot plant and laboratory consumables and
maintenance expenses of $0.19 million, and by lower research and
development tax credits of $0.10 million.
General
and administrative expenses for the three-month period ended
November 30, 2020 amounted to $2.72 million compared to $1.83
million for the three-month period ended November 30, 2019, an
increase of $0.90 million, or $0.92 million excluding stock-based
compensation. The increase of $0.92 million was mainly attributable
to higher legal and professional fees of $0.84 million due to costs
principally associated with the ongoing SEC investigation disclosed
in our 8-K filed on October 16, 2020 and securities class action
suits, and higher insurance expenses of $0.31, offset by lower
employee compensation costs of $0.23 million.
Depreciation
and amortization expenses for the three-month period ended November
30, 2020 totaled $0.10 million compared to $0.22 million for the
three-month period ended November 30, 2019, a decrease of $0.12
million. This decrease is mainly attributable to the write-down of
machinery and equipment assets.
A
write-down and impairment of machinery and equipment for the
three-month period ended November 30, 2020 totaled $5.03 million
compared to nil for the three-month period ended November 30,
2019.
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. However, the
decision to dedicate the demonstration and training facility to
research and development activities requires them to be written off
and all future costs associated with the demonstration and training
facility will be recognized as a research and development expense
in the consolidated statements of operations and comprehensive loss
in accordance with ASC 730, Research and Development
Costs.
Interest
and other financial (income) expenses for the three-month period
ended November 30, 2020 totaled $(0.04) million compared to $0.69
million the three-month period ended November 30, 2019, a decrease
of $0.73 million. The decrease is mainly attributable to a decrease
in accretion expense of $0.56 million, a decrease in interest
expense on convertible notes of $0.09 million and by an increase in
gain on revaluation of foreign exchange contracts of $0.08
million.
Nine Months Ended November 30, 2020
The
following table summarizes our operating results for the nine-month
periods ended November 30, 2020 and 2019, in U.S.
dollars.
|
|
Nine
Months Ended November 30
|
||
|
|
2020
|
2019
|
$
Change
|
|
Revenues
|
$-
|
$-
|
$-
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Research and
development
|
|
|
|
|
Stock-based
compensation
|
1,054,682
|
941,142
|
113,540
|
|
Other
research and development
|
9,449,411
|
2,305,104
|
7,144,307
|
|
Total
research and development
|
10,504,093
|
3,246,246
|
7,257,847
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
Stock-based
compensation
|
1,720,067
|
1,669,669
|
50,398
|
|
Other
general and administrative
|
5,006,272
|
3,777,387
|
1,228,885
|
|
Total
general and administrative
|
6,726,339
|
5,447,056
|
1,279,283
|
|
|
|
|
|
|
Write-down and
impairment of property, plant and equipment
|
5,043,120
|
22,985
|
5,020,135
|
|
Depreciation and
amortization
|
654,354
|
562,382
|
91,972
|
|
Interest and other
financial (income) expenses
|
26,016
|
1,817,091
|
(1,791,075)
|
|
Interest
income
|
(78,394)
|
(363,565)
|
285,171
|
|
Foreign exchange
loss
|
275,903
|
15,297
|
260,606
|
|
Total
operating expenses
|
23,151,431
|
10,747,492
|
12,403,939
|
|
Net
loss
|
$(23,151,431)
|
$(10,747,492)
|
$(12,403,939)
|
The net
loss for the nine-month period ended November 30, 2020 increased by
$12.40 million to $23.15 million, as compared to the net loss for
the nine-month period ended November 30, 2019 of $10.75
million. The increase of $12.40 million is primarily due to
higher research and development expenses of $7.26 million, the
write-down and impairment of machinery and equipment of $5.02
million, higher general and administrative expenses of $1.28
million, lower interest income of $0.29 million, higher foreign
exchange loss of $0.26 million and higher depreciation and
amortization expenses of $0.33 million, offset by a decrease in
interest and other financial (income) expenses of $1.79
million.
Research
and development expenses for the nine-month period ended November
30, 2020 amounted to $10.50 million compared to $3.25 million for
the nine-month period ended November 30, 2019, an increase of $7.26
million, and $7.14 million excluding stock-based compensation. The
increase of $7.14 million was primarily attributable to higher
engineering fees of $3.16 million due to external engineering costs
for our Infinite LoopTM
manufacturing process, higher purchases of non-capitalizable
research and development machinery and equipment of $2.33 million,
higher employee compensation expenses of $0.53 million, higher
plant and laboratory consumables and maintenance expenses of $0.50
million, and by lower research and development tax credits of $0.32
million which was partially offset by a COVID-19-related government
wage subsidy of $0.19 million. The increase in non-cash stock-based
compensation expense of $0.11 million is mainly attributable to the
timing of stock awards provided to certain employees.
General
and administrative expenses for the nine-month period ended
November 30, 2020 amounted to $6.73 million compared to $5.45
million for the nine-month period ended November 30, 2019, an
increase of $1.28 million, or $1.23 million excluding stock-based
compensation. The increase of $1.23 million was mainly attributable
to higher insurance expenses of $1.04 million, and higher legal and
professional fees of $0.89 million due to costs principally
associated with the ongoing SEC investigation disclosed in our 8-K
filed on October 16, 2020 and securities class action suits, offset
by lower employee compensation costs of $0.55 million. During the nine-month period ended
November 30, 2020, the Company recorded a COVID-19-related
government wage subsidy of $0.06 million in general and
administrative expenses. Stock-based compensation expense for the
nine-month period ended November 30, 2020 amounted to $1.72 million
compared to $1.67 million for the nine-month period ended November
30, 2019, representing an increase of $0.05 million, which was
mainly attributable lower stock awards provided to
executives.
Depreciation
and amortization expenses for the nine-month period ended November
30, 2020 totaled $0.65 million compared to $0.56 million for the
nine-month period ended November 30, 2019, an increase of $0.09
million. This increase is mainly attributable to the investment in
fixed assets at the Company’s pilot plant and corporate
offices.
A
write-down and impairment of machinery and equipment for the
nine-month period ended November 30, 2020 totaled $5.04 million
compared to $0.02 million for the nine-month period ended November
30, 2019, an increase of $5.02 million.
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. However, the
decision to dedicate the demonstration and training facility to
research and development activities requires them to be written off
and all future costs associated with the demonstration and training
facility will be recognized as a research and development expense
in the consolidated statements of operations and comprehensive loss
in accordance with ASC 730, Research and Development
Costs.
Interest
and other financial (income) expenses for the nine-month period
ended November 30, 2020 totaled $0.03 million compared to $1.82
million the nine-month period ended November 30, 2019, representing
a decrease of $1.80 million. The decrease is mainly attributable to
a decrease in accretion expense of $1.64 million and a decrease in
interest expense on convertible notes of $0.30 million offset by a
decrease in gain on conversion of convertible notes of $0.08
million.
LIQUIDITY AND CAPITAL RESOURCES
Summary of Cash Flows
A
summary of cash flows for the nine-month period ended November 30,
2020 and 2019 was as follows:
|
|
Nine
Months Ended November 30
|
|
|
|
2020
|
2019
|
|
Net cash used in
operating activities
|
$(14,544,251)
|
$(6,819,748)
|
|
Net cash used in
investing activities
|
(2,386,593)
|
(2,592,921)
|
|
Net cash provided
(used) by financing activities
|
26,616,472
|
39,127,875
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
210,516
|
(57,105)
|
|
Net increase
(decrease) in cash and cash equivalents
|
$9,896,144
|
$29,658,101
|
Net Cash Used in Operating Activities
During
the nine months ended November 30, 2020, we used $14.54 million in
operations compared to $6.82 million during the nine months ended
November 30, 2019. The increase in cash used in operations of $7.08
million is mainly attributable to higher external engineering costs
paid of $2.47 million for our Infinite LoopTM
process, higher investments of non-capitalizable machinery and
equipment of $2.33 million, higher directors’ and
officers’ insurance premiums paid of $0.89 million, deposits
on machinery and equipment of $0.75 million, increased professional
fees of $0.59 million and increased research and development
expenses. The variation in the amount for prepaid directors and
officers insurance is due to an increase of $1.30 million of the
annual premium as well as a change in the payment structure
compared to the prior year.
Net Cash Used in Investing Activities
During
the nine months ended November 30, 2020, the Company made
capitalizable investments of $1.58 million in property, plant and
equipment as compared to $1.7 million for the nine months ended
November 30, 2019, primarily in connection with the upgrade of its
pilot plant. Additionally, the Company made deposits on equipment
of $0.42 million as at November 30, 2020 compared to nil at
November 30, 2019.
During
the nine months ended November 30, 2020, the Company made
investments in intangible assets of $0.16 million as compared to
$0.09 million for the nine months ended November 30, 2019,
principally for its GEN II patents.
During
the nine months ended November 30, 2020, the Company also made a
contribution of $0.65 million to Indorama Loop Technologies, LLC,
the joint venture with Indorama Ventures Holdings LP, USA compared
to $0.85 million for the nine months ended November 30,
2019.
Net Cash Provided from (Used in) Financing Activities
During
the nine months ended November 30, 2020, the Company sold 2,087,000
shares of its common stock at an offering price of $12.75 for total
net proceeds of $25.00 million pursuant to the “Underwriting
Agreement”. In the same period, the Company also received net
proceeds of $1.65 million upon the exercise of warrants for 190,529
shares of its common stock.
During
the nine months ended November 30, 2020, we repaid $0.03 million of
long-term debt.
Loop Industries, Inc.
Condensed Consolidated Statements of Operations and Comprehensive
Loss
(Unaudited)
|
|
Three
Months Ended November 30
|
Nine
Months Ended November 30
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Revenue
|
$-
|
$-
|
$-
|
$-
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Research and
development
|
6,274,283
|
1,278,172
|
10,504,093
|
3,246,246
|
|
General and
administrative
|
2,724,016
|
1,825,813
|
6,726,339
|
5,447,056
|
|
Write-down and
impairment of property, plant and equipment
|
5,034,606
|
-
|
5,043,120
|
22,985
|
|
Depreciation and
amortization
|
104,307
|
219,628
|
654,354
|
562,382
|
|
Interest and other
financial (income) expenses
|
(41,855)
|
693,027
|
26,016
|
1,817,091
|
|
Interest
income
|
(20,008)
|
(171,274)
|
(78,394)
|
(363,565)
|
|
Foreign exchange
loss
|
95,644
|
5,533
|
275,903
|
15,297
|
|
Total
expenses
|
14,170,993
|
3,850,899
|
23,151,431
|
10,747,492
|
|
|
|
|
|
|
|
Net
Loss
|
(14,170,993)
|
(3,850,899)
|
(23,151,431)
|
(10,747,492)
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
Foreign currency
translation adjustment
|
66,170
|
7,552
|
298,570
|
(30,133)
|
|
Comprehensive
income (loss)
|
$(14,104,823)
|
$(3,843,347)
|
$(22,852,861)
|
$(10,777,625)
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
Basic and
Diluted
|
$(0.34)
|
$(0.10)
|
$(0.57)
|
$(0.29)
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
Basic and
Diluted
|
41,715,806
|
39,133,627
|
40,515,885
|
37,404,165
|
Loop Industries, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
November 30, 2020
|
February 29, 2020
|
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$43,613,815
|
$33,717,671
|
|
Sales tax, tax
credits and other receivables
|
1,182,107
|
664,544
|
|
Prepaid expenses
and deposits
|
1,230,442
|
141,226
|
|
Total current
assets
|
46,026,364
|
34,523,441
|
|
Investment in
joint venture
|
1,500,000
|
850,000
|
|
Property, plant
and equipment, net
|
3,355,410
|
7,260,254
|
|
Intangible assets,
net
|
631,590
|
202,863
|
|
Total
assets
|
$51,513,364
|
$42,836,558
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
and accrued liabilities
|
$4,088,147
|
$2,082,698
|
|
Current portion of
long-term debt
|
53,992
|
52,126
|
|
Total current
liabilities
|
4,142,139
|
2,134,824
|
|
Long-term
debt
|
2,336,374
|
2,238,026
|
|
Total
liabilities
|
6,478,513
|
4,372,850
|
|
|
|
|
|
Commitments and Continencies
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
Series A Preferred
stock par value $0.0001; 25,000,000 shares authorized; one share
issued and outstanding
|
-
|
-
|
|
Common stock par
value $0.0001: 250,000,000 shares authorized;42,412,739 shares
issued and outstanding (February 29, 2020 –
39,910,774)
|
4,242
|
3,992
|
|
Additional paid-in
capital
|
112,112,970
|
82,379,413
|
|
Additional paid-in
capital – Warrants
|
9,475,996
|
9,785,799
|
|
Accumulated
deficit
|
(76,468,478)
|
(53,317,047)
|
|
Accumulated other
comprehensive loss
|
(89,879)
|
(388,449)
|
|
Total
stockholders' equity
|
45,034,851
|
38,463,708
|
|
Total liabilities
and stockholders' equity
|
$51,513,364
|
$42,836,558
|
Loop Industries, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Nine Months
Ended November 30
|
|
|
|
2020
|
2019
|
|
Cash Flows from Operating Activities
|
|
|
|
Net
loss
|
$(23,151,431)
|
$(10,747,492)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
654,354
|
562,382
|
|
Stock-based
compensation expense
|
2,774,749
|
2,610,811
|
|
Write-down and
impairment of property, plant and equipment
|
5,043,120
|
22,985
|
|
Accretion and
accrued interest
|
56,259
|
1,898,410
|
|
Loss on
revaluation of warrants
|
-
|
8,483
|
|
Deferred financing
costs
|
-
|
86,212
|
|
Gain on conversion
of convertible notes
|
-
|
(232,565)
|
|
Loss (gain) on
revaluation of foreign exchange contracts
|
(58,945)
|
10,881
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Sales tax, tax
credits and other receivables
|
(477,855)
|
(37,536)
|
|
Prepaid
expenses
|
(1,075,291)
|
52,649
|
|
Accounts payable
and accrued liabilities
|
1,690,789
|
(1,054,967)
|
|
Net cash used in
operating activities
|
(14,544,251)
|
(6,819,748)
|
|
|
|
|
|
Cash Flows from Investing Activities
|
|
|
|
Investment in
joint venture
|
(650,000)
|
(850,000)
|
|
Additions to
property, plant and equipment
|
(1,580,795)
|
(1,647,433)
|
|
Additions to
intangible assets
|
(155,798)
|
(95,488)
|
|
Net cash used in
investing activities
|
(2,386,593)
|
(2,592,921)
|
|
|
|
|
|
Cash Flows from Financing Activities
|
|
|
|
Proceeds from sale
of common shares and exercise of warrants, net of share issuance
costs
|
26,649,253
|
39,167,381
|
|
Repayment of
long-term debt
|
(32,781)
|
(39,506)
|
|
Net cash provided
from financing activities
|
26,616,472
|
39,127,875
|
|
|
|
|
|
Effect of exchange
rate changes
|
210,516
|
(57,105)
|
|
Net change in cash
and cash equivalents
|
9,896,144
|
29,658,101
|
|
Cash and cash
equivalents, beginning of period
|
33,717,671
|
5,833,390
|
|
Cash and cash
equivalents, end of period
|
$43,613,815
|
$35,491,491
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
Income tax
paid
|
$-
|
$-
|
|
Interest
paid
|
$28,613
|
$45,668
|
|
Interest
received
|
$78,394
|
$363,565
|
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 low-energy 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 saltwater, into 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 toward a circular economy by
preventing plastic waste and recovering waste plastic for a more
sustainable future for all.
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
us 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 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 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 issues 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, 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, and (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 ext. 226
scorrente@loopindustries.com
Investor
Inquiries:
Greg
Falesnik
MZ
Group—MZ North America
+1
949-259-4987
LOOP@mzgroup.us
www.mzgroup.us