Loop Industries has launched a board-led review of strategic and financial alternatives, including a potential sale, merger or going-private transaction, as the company works to secure funding for its planned India joint venture.
The clean-technology company said that its Board of Directors has formed a Strategic Alternatives Committee to assess ways to strengthen its capital position, advance commercialization and maximize long-term shareholder value.
The move comes after Jeff Geygan was appointed chairman and the company separated the chairman and chief executive roles, setting up a formal board-led examination of Loop's capital requirements, strategic direction and technology platform.
At the top of the committee's agenda is funding Loop's required contribution to its planned India joint venture. The company said it is considering project-level debt, strategic capital, equity financing or a combination of those sources.
But the review goes considerably further.
Loop said the committee will examine strategic investments, project financing, licensing and commercial partnerships, regional joint ventures and business combinations, as well as corporate-structure alternatives and a potential sale, merger or going-private transaction.
"The recent change in Board leadership is a catalyst for a disciplined review of Loop's strategic and financial alternatives," said Jeff Geygan, Chairman of the Board. "Our immediate priority is securing the capital required to advance the India joint venture through the most efficient and shareholder-aligned structure available. At the same time, the Board will evaluate every credible path to unlock the value of Loop's technology and intellectual-property platform and maximize shareholder value."
Founder and CEO Daniel Solomita will remain in charge of Loop's operating and commercial activities, including the India joint venture, customer and partner relationships, financing initiatives and commercialization of the company's technology.
Loop stressed that no specific transaction has been selected and no timetable has been set for the review.
The company also cautioned that the process may not result in a sale, merger, going-private transaction or any other deal.
Loop's strategic review comes as it seeks to commercialize technology designed to convert waste PET plastic and polyester fiber into virgin-quality PET resin and polyester fiber. The company says its patented technology can repeatedly recycle PET without degradation in quality.
For now, the board is keeping its options open — with securing capital for India as the immediate priority and a much broader range of potential transactions under consideration.
