Loop Industries Secures €10M Deal, Expands Global Reach

Introduction

Loop Industries Inc (NASDAQ: LOOP) is a clean-technology company headquartered in Terrebonne, Quebec, Canada. Founded in 2015, Loop develops and licenses patented depolymerization technology that converts waste polyethylene terephthalate (PET) plastic and polyester fiber into virgin-quality monomers. Its Infinite Loop™ process aims to assist brands in reducing emissions, minimizing waste, and transitioning to circular supply chains.

Corporate Structure

Loop Industries employs between 51 and 200 staff, including chemical engineers, process specialists, and business development professionals. The company has developed expertise in technology development and licensing negotiations since commissioning its production facility in Canada in 2019. The executive team oversees global deployment through a combination of owned facilities and strategic partnerships.

Developments and News

On December 23, 2024, Loop closed a financing and licensing transaction with Reed Société Générale Group, issuing €10 million of convertible preferred shares and granting a license to construct an Infinite Loop™ facility in Europe. Total proceeds of $20.8 million (20 million euros) will fund the planned 70 kta joint venture in India with Ester Industries Ltd. and support Loop’s operational cash flow.

For the quarter ended November 30, 2024, Loop reported revenue of $52,000, up from $26,000 a year earlier. Expenses reached nearly $12 million, resulting in a net loss of $11.9 million, compared with a net loss of $4.2 million in Q3 FY2024.

Loop and Ester Industries announced a 50/50 joint venture in May 2024 to construct an Infinite Loop™ facility in Gujarat, India. Groundbreaking is targeted by December 2025, with commercial operations expected to commence in early 2027. The plant will produce 70,000 tons annually of recycled dimethyl terephthalate (rDMT) and 23,000 tons of recycled monoethylene glycol (rMEG).

Financial and Strategic Analysis

On June 25, 2025, Loop’s share price closed at $1.1395, down 30.09% from the prior session, with 354,609 shares traded on NASDAQ. The company’s market capitalization stands at approximately $78 million. For the trailing twelve months ended March 31, 2025, Loop generated $10.9 million in revenue and incurred a net loss of $15.1 million (EPS: ‑$0.32). Valuation multiples include a Price/Sales ratio of 7.6 and a Price/Book ratio of 224.9. The balance sheet shows cash of $13.0 million and a debt-to-equity ratio above 840%.

Strategically, Loop emphasizes technology licensing over facility ownership to accelerate its global roll-out with limited capital outlay. The transaction with Reed Société Générale and the joint venture in India illustrate this model, providing upfront payments, milestone fees, and engineering revenues while preserving cash for new markets.

Market Position and Industry Context

Loop competes in the advanced recycling sector, where chemical depolymerization is positioned alongside traditional mechanical recycling and virgin PET resin production. Its Infinite Loop™ technology can handle mixed-color, degraded feedstock and produce food-grade materials, addressing some limitations of other recycling methods. Collaborations with consumer brands and investment firms have supported the validation of its technology, although large-scale commercial deployments remain in development. As regulatory and corporate sustainability mandates evolve, demand for scalable, high-quality recycled polymers is expected to increase, which may enhance Loop’s licensing approach as a growth driver.

tl;dr

Loop closed a €10 million licensing and financing deal with Reed Société Générale Group on December 23, 2024, raising $20.8 million. Q3 FY2025 results for the quarter ended November 30, 2024, showed $52,000 in revenue and an $11.9 million net loss. The 70 kta Infinite Loop™ facility in Gujarat, India, is slated for groundbreaking by December 2025, with commercial operations beginning in early 2027. Loop’s stock trades at $1.1395 (-30.09%), with a market capitalization near $78 million, as it pursues a licensing-led strategy to scale its circular polyester technology globally.