Loop Industries, A convertible preferred security agreement has raised €10 million between Reed Societe Generale Group, an investment vehicle within Societe Generale bank, and a technology company dedicated to advancing a sustainable plastics economy.
Loop has already paid Reed Societe Generale Group €10 million in advance for the first Infinite Loop technology license in addition to the investment. Other milestone-based awards are also part of the deal.
As part of its strategy to promote its recycling technology in Europe and fund projects other regions of the world with lower production costs, including India, where it is building an Infinite Loop factory with Ester Industries, Loop has reached this arrangement. The primary goal of the Indian venture will be to produce recycled rDMT and rMEG materials.
According to this licensing agreement, Reed Societe Generale Group will control 90% of the European collaboration, while Loop will own 10%. Although Loop has the opportunity to increase its ownership to 50%, the existing license is only for one facility, and further licenses are required for future expansions.
Loop’s recycling technology has been in use at its Terrebonne facility for four years, producing PET resin for packaging and polyester fiber for clothing. By licensing its technology to meet global demand in places where it does not wish to construct its own facilities, Loop seeks to spur expansion without overstretching its resources.
