Loop Industries Reports Fourth Quarter and Full Year Fiscal 2024 Results and Provides Updates on Business Developments

• Loop and Ester Industries Ltd. ("Ester") sign agreement to form a 50/50 India joint venture and establish an Infinite Loop™ manufacturing facility in India
• Financing negotiations with Reed Management SAS ("Reed") continuing to progress well
• Loop and SK Geo Centric ("SKGC") exploring opportunity to construct monomer facility in Ulsan
• Loop and On launch the Cloudeasy Cyclon shoe manufactured utilizing the Infinite Loop™ technology

Loop Management to hold update call at 8:30 AM ET on May 30, 2024

MONTREAL, QC / ACCESSWIRE / May 29, 2024 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today provided an update on its activities and reported its consolidated financial results for the fourth quarter and full fiscal year ended February 29, 2024.

Infinite Loop™ India Joint Venture

On May 1, 2024, Loop signed an agreement with Ester to form a 50/50 India joint venture ("India JV"). The India JV plans to establish an Infinite Loop™ manufacturing facility in India to produce lower carbon footprint recycled dimethyl terephthalate ("DMT"), recycled mono-ethylene glycol ("MEG") and specialty polymers using the Infinite Loop™ technology. Loop believes this unique product offering complements Loop's strategy to produce PET plastic and polyester and addresses the large and underserved US$28 billion specialty chemicals market for DMT and MEG.

Loop and Ester anticipate that total capital investment for the first India facility is estimated at approximately US$165 million and construction is anticipated to be complete by the end of 2026. Loop believes the investment is projected to generate high returns in capital, without the need for significant sustainability-linked premium pricing, and strong cash flows including an expected 5% annual royalty payment on sales from the facility.

This partnership with Ester reflects a strategic focus going forward to concentrate equity investments and capital allocation in global low-cost manufacturing environments and gravitate towards an asset-light model based on royalties in geographical regions with higher capital investment and manufacturing costs.

Global Commercialization Update - Asia

On April 27, 2023, Loop and SKGC entered into a joint venture agreement to deploy Loop's depolymerization technology in the Asian market through multiple commercial manufacturing facilities. The planned Infinite Loop™ commercial manufacturing facility, in Ulsan, South Korea, was planned to break ground in the first half of 2024. The timing of the facility is currently under review by the partners while they evaluate opportunities to reduce capital costs and carry out discussions with the Korean government for subsidies related to the facility. Loop and SKGC are also evaluating the opportunity to build a monomer facility in order to capitalize on the large and growing market and attractive economics for DMT and MEG, including lower capital investment requirements for such a facility.

Memorandum of Understanding ("MOU") with Reed

On January 16, 2024, Loop announced that it had signed a non-binding MOU with Reed, a newly-formed European investment firm focused on high impact and technology-enabled infrastructure. Pursuant to the MOU, Loop and Reed intend to form a strategic long-term partnership through the establishment of a 50/50 joint venture to commercialize Loop's technology in Europe and for Reed to provide financing which would be utilized to fund the global commercialization of the Infinite Loop™ Technology (the "Proposed Transaction").

Since the signing of the MOU, Reed has invested significant resources in undertaking and completing extensive operational, technical, ESG, and legal due diligence. Loop and Reed continue to negotiate binding agreements with respect to the Proposed Transaction, and each party continues to work towards obtaining financing to fulfill its funding obligations with respect to the Proposed Transaction. The Company understands from Reed that its funding negotiations are progressing well and that it now expects to obtain its required funding via a transformative transaction, which by its nature has been a more extensive process than previously contemplated and which would also require regulatory approval. While entry into binding agreements would remain subject to the satisfaction of certain closing conditions, Loop and Reed are hopeful that they will enter into such binding agreements imminently, and close the Proposed Transaction by the end of the second quarter of the fiscal year ending February 28, 2025.

Loop x On Shoes Cloudeasy Cyclon Launch

On May 21^st, 2024, Loop announced its collaboration with On, the Swiss sportswear brand, and unveiled the launch of the Cloudeasy Cyclon shoe, which features an upper crafted from yarn made with Loop's 100% recycled polyester fiber using the Infinite Loop™ fiber-to-fiber recycling technology. The product is part of On's Circular Cyclon™ subscription program and is available online at www.on.com/cyclon.

CEO Comment

Daniel Solomita, Founder and CEO of Loop, commented on the recent updates, saying: "Our partnership with Ester reflects our emphasis on allocating capital in low-cost countries. By establishing the Infinite Loop™ India joint venture, we expect to leverage India's favorable economic conditions to produce virgin quality, recycled monomers and specialty polymers with significant cost efficiencies, which we believe will enable Loop to achieve attractive economic returns while serving a broader range of customers. Simultaneously, our planned partnership with Reed is expected to provide for attractive financing to meet our deployment. We believe this project will provide significant returns on capital and value creation for our shareholders. Also, we are excited for the potential to be undertaking this project with a strategic partner with which we share a common vision for the future and are fully aligned."

Corporate Update Call

Senior Management of Loop will host a corporate update call, followed by a question-and-answer session, which can be accessed via the dial-in numbers below. Slides supporting Senior Management's remarks will be available via the Investors section of Loop's website at http://loopindustries.com/en/investors/overview.

Date: Thursday, May 30, 2024
Time: 8:30 am Eastern Time

Participant joining details (by Telephone):

Joining by Telephone:

United States (Local): +1 404 975 4839

United States (Toll-Free): +1 833 470 1428

Access Code: 697471

OR

Registration Link: https://www.netroadshow.com/events/login?show=c830b0da&confId=65809

- Avoid wait time - Bypass speaking with an operator to join the call

- Receive a Calendar Invitation with call access details including your unique PIN

Fiscal 2024 Financial Results

Results of Operations

Fourth Quarter Ended February 29, 2024

The following table summarizes our operating results for the three-month periods ended February 29, 2024 and February 28, 2023, in thousands of U.S. Dollars.

Revenues

Revenues for the three-month period ended February 29, 2024 increased $33 to $45, as compared to $12 for the same period in 2023. The revenues resulted from the delivery of initial volumes to customers of Loop^™ PET resin produced using monomers manufactured at Loop's small-scale production facility in Terrebonne, Québec (the "Terrebonne Facility").

Research and Development

Research and development expenses for the three-month period ended February 29, 2024 increased $805 to $3,018, as compared to $2,213 for the same period in 2023. The increase was primarily attributable to a $866 increase in plant and laboratory operating expenses, which included an inventory write-down of $817 in the three-month period ended February 29, 2024 on finished goods and work in process inventories related to inventory volumes not expected to be sold in the next twelve months, and a $427 increase in external engineering expenses which included $504 related to the Infinite Loop^™ Europe project in the three-month period ended February 29, 2024. These increases were partially offset by a $309 decrease in employee compensation expenses, and a $101 decrease in stock-based compensation expenses.

General and administrative expenses

General and administrative expenses for the three-month period ended February 29, 2024 increased $22 to $2,221, as compared to $2,199 for the same period in 2023. The increase was primarily attributable to an increase of $266 in stock-based compensation expenses which was primarily attributable to restricted stock unit ("RSU") forfeitures in the three-month period ended February 28, 2023. This increase was partially offset by a $100 decrease in employee compensation expenses.

Net Loss

The net loss for the three-month period ended February 29, 2024 increased $10,514 to $5,091 in the period, as compared to a net income of $5,423 for the same period in 2023. The increase was primarily due to a gain on disposition of assets of $9,980 related to the Company's sale of land in Bécancour, Québec in the three-month period ended February 28, 2023, and the increase of $805 in research and development expenses.

Fiscal Year Ended February 29, 2024

The following table summarizes our operating results for the years ended February 29, 2024 and February 28, 2023, in thousands of U.S. Dollars.