Loop Industries, Inc. is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber while reducing dependence on fossil fuels. The company owns patented and proprietary methanolysis based depolymerization technology that breaks down low value waste PET plastic and polyester fiber, including bottles, packaging, carpets and clothing, into its base monomers dimethyl terephthalate and monoethylene glycol. After purification the monomers are repolymerized to create virgin quality Loop™ branded PET resin suitable for food grade packaging and polyester fiber, enabling a closed loop where materials can be recycled infinitely without quality loss. Loop has demonstrated the effectiveness of its technology at its Terrebonne, Québec facility, which has been operating for five years and provides a steady supply of Loop™ PET and polyester fiber to customers. To commercialize the Infinite Loop™ technology globally, Loop pursues a combination of direct investments with strategic partners to own and operate manufacturing facilities and the licensing of its technology to third parties. Current initiatives include a 50/50 joint venture with Ester in India to build a 70,000 ton per year facility and a licensing partnership with Reed Societe Generale Group for a European facility, both aimed at expanding production capacity and geographic reach.

Loop Industries generates revenue from three main streams. First it earns operating profits from the commercial facilities it owns or jointly owns through joint ventures, such as the anticipated profits from the India facility once it reaches commercial production. Second it receives upfront payments and ongoing royalties from licensing its proprietary depolymerization technology; the agreement with Reed Societe Generale Group provided an initial cash receipt of $20.8 million, which included a $10.4 million upfront royalty and a $10.4 million issuance of Series B Convertible Preferred Stock, with additional milestone payments to be earned as the European project advances. Third it provides engineering services to joint venture projects and has recorded fees of $0.4 million for the quarter ended February 28, 2025. In addition Loop serves as the exclusive seller and marketer for the output of its joint venture partners, allowing it to capture revenue from the sale of Loop™ PET resin and polyester fiber produced at facilities such as the Terrebonne plant and the future India plant. These revenue streams are intended to support long term financial sustainability and growth.

Loop Industries occupies a distinct position in the recycling sector as a provider of chemical depolymerization technology that can process contaminated PET and polyester waste streams which mechanical recyclers often reject. Its low temperature methanolysis based process operates below 90 degrees Celsius, uses only trace amounts of water and a low concentration catalyst, resulting in lower energy consumption, fewer side reactions and the ability to produce high purity monomers suitable for food contact applications. Competing methods such as traditional mechanical recycling suffer from degradation of polymer properties with each cycle and limited ability to handle multi layer or colored waste, while other chemical recycling techniques typically require higher temperatures and pressures that increase costs and environmental impact. Loop's competitive advantages stem from its proven five year operation at the Terrebonne facility, a robust patent portfolio covering four families of inventions with expiration dates ranging from 2037 to 2044, and strategic alliances with experienced industrial partners like Ester and Reed Societe Generale Group that provide manufacturing expertise, market access and local knowledge. The broader market for PET plastic and polyester fiber remains large, with global production of about 101 million metric tons in 2023 and a projected increase to roughly 135 million metric tons by 2032, driven by rising demand for recycled content from consumer brands and regulatory requirements in regions such as North America, Europe and Asia.

The company serves global consumer packaged goods companies, apparel manufacturers and retail brands that seek sustainable polyester and PET materials to meet their sustainability goals and regulatory obligations. Specific customers referenced in the filing include Hyosung TNC which supplies performance yarn for textile applications, Pleatsmama which creates eco friendly handbags using Loop's recycled polyester, and On AG the Swiss sportswear brand that launched a shoe incorporating Loop's recycled fiber as part of its subscription program. Loop also works with its joint venture partner Ester to market the output of the planned India facility and has supplied Loop's PET from its Terrebonne facility to various brand collaborators for limited edition product launches such as the Hyosung Pleatsmama handbag collaboration and the On AG Cloudeasy Cyclon shoe. These relationships demonstrate the company's ability to deliver its virgin quality recycled polyester and PET to end users across multiple industries.