Loop Industries has announced that Northern Private Capital (NPC) is to purchase a minority stake in the company for US$35 million.
Under the terms of the deal, NPC will purchase a 10.5 percent stake (4,093,567 common shares) with a three-year option to buy a further 4,093,567 common shares for approximately US$45 million to bring its stake to 17.3 percent.
“We have been patient in our process to identify and bring in the right long-term equity partner for our company,” said Loop Founder and CEO Daniel Solomita. “I am delighted to initiate our relationship with NPC who shares our long-term vision for Loop and who will bring valuable experience as we implement our growth strategy. This financing is the culmination of a period during which we have achieved a number of major milestones. During the past 12 months we have developed and introduced our Generation II technology, begun our joint venture relationship with Indorama Ventures, initiated our partnership with thyssenkrupp to develop greenfield large-scale waste to resin manufacturing facilities, and signed sales contracts with leading global consumer brands. We have also continued to strengthen our leadership team, including the recruitment of Nelson Gentiletti as COO and CFO, as well as build out our R&D team. We are in an excellent position to execute our strategy to capitalize on our technology and play a leading role in helping to solve the global plastics crisis.”
“We couldn’t be more excited to be partnering with Daniel and the rest of the Loop management team as they begin the commercialization phase of their breakthrough plastic recycling technology in partnership with Indorama Ventures and thyssenkrupp, two leaders in the industry. Rarely in my long career have I come upon a company as well positioned to disrupt a giant market as Loop is today. On top of that, we are proud to be playing a part in reducing plastic pollution in the world today” said NPC Founder John Risley. “