MONTREAL, QC / ACCESSWIRE / January 14, 2021 / 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 our 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
[email protected]
Investor Inquiries:
Greg Falesnik
MZ Group-MZ North America
+1 949-259-4987
[email protected]
www.mzgroup.us
SOURCE: Loop Industries, Inc.