Loop Industries Secures 93-Acre India Site, Moves Forward on Infinite Loop Facility Construction

Loop Industries, Inc. (NASDAQ:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular economy for polyester by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and textile-to-textile (T2T) polyester, today reported its consolidated financial results for the second quarter of fiscal year 2026 and provided an update on key milestones.

Infinite Loop™ India Update

Offtake agreements secured for India: In September 2025, Loop executed a multi-year offtake agreement with a leading global branded sports apparel company for the sale of Twist™ polyester from the Infinite Loop India facility. Loop also executed an offtake agreement with Taro Plast S.p.A., an Italy-based specialty polymer manufacturer, for the sale of Loop™ DMT from the Infinite Loop India facility. We continue to advance negotiations with additional apparel and CPG brands to secure further offtake agreements.

Strategic alliance with Shinkong: In August 2025, Loop announced a strategic alliance with Shinkong Synthetic Fibers Corporation ("Shinkong"), a leader in Taiwan's polyester industryand a global leader in sustainable and high-performance polyester yarn solutions for apparel brands, to support the shift by global brands to textile-to-textile circular polyester. This strategic partnership aims to combine Loop's branded textile-to-textile Twist™ polyester and Shinkong's polyester fiber spinning capabilities and customer network.

Strategic alliance with Hyosung TNC: In September 2025, Loop announced a strategic alliance with Hyosung TNC, a complete sustainable textile solutions provider and the world's largest manufacturer of spandex by market share. This alliance aims to combine Loop's branded textile-to-textile Twist™ polyester and Hyosung TNC's industry-leading expertise in advanced textile materials.

Site acquisition agreement executed: In August 2025, ELITe, our India JV with Ester Industries Ltd., executed an agreement for the acquisition of approximately 93 acres in Gujarat, India, for total consideration of $10.5M which represents a $5M reduction in the amount included in project cost estimate. The site has excellent strategic access to textile waste for feedstock, renewable clean energy, and industrial infrastructure. There is sufficient land on the site for both the planned initial 70,000 metric ton facility and an additional 100,000 metric ton capacity expansion.

Engineering services agreement signed: In June 2025, Loop executed a $1.5 million engineering services agreement with ELITe, through which Loop will support the detailed engineering phase for the Infinite Loop™ India facility. We anticipate entering into additional engineering services agreements for India throughout the construction phase.

Project debt financing for India: ELITe has engaged KPMG to manage the debt syndication process for financing the construction of the Infinite Loop™ India facility. Positive progress is being made in discussions with potential lenders.

European Partnership with Reed Societe Generale Group

Site selection and development activities continuing to progress: Loop and Reed Societe Generale Group are in an advanced stage of selecting a final project location for the first Infinite Loop™ facility in Europe and are engaging with government entities regarding available subsidies and incentives, as well as identifying strategic partners to support project execution.

Loop to provide engineering and modular construction for facility: Once the project site is identified, we expect to provide engineering services to support project execution, along with a modular construction solution for the Infinite Loop™ Europe project to enhance project profitability and returns and accelerate the timing of project start-up. Loop expects to generate engineering revenues from this project in 2026.

Financial highlights

Cash operating expenses* for the quarter were $2.43 million, reflecting a year-over-year decrease of $1.74 million. At the end of the second quarter, we had total available liquidity of $9.86 million, which we believe to be sufficient to fund operations while we secure the balance of our financing requirements for our equity contribution to the India JV and for operating expenses until the start-up of the Indian facility.

*Cash operating expenses include research & development and general & administrative expenses, less stock-based compensation expenses.

CEO Comment

"This was a landmark quarter for the Infinite Loop India project. With the strategic site now secured in the Gujarat Province, we have achieved several milestones necessary to advance the facility to the construction phase. On the commercial front, we secured our foundational anchor customer through a major off-take agreement with a world-leading sports apparel company, complemented by an agreement with Taro Plast to supply sustainable DMT for the automotive industry. We are also making significant headway in securing project debt financing from a strong syndicate of international and local Indian banks," said Daniel Solomita, Founder and CEO of Loop. "The European project is also progressing well, and we are now in the final stages of site selection. Once the optimal site is secured, we anticipate this project will begin generating a meaningful new revenue stream for Loop. This revenue will be sourced from initial Engineering services and subsequent milestone licensing payments from the Reed Societe Generale Group."