Loop Industries, Inc. announced that the company and Reed Management have signed definitive binding agreements, subject to certain closing conditions, for an investment of ?35 million from Reed to fund the global commercialization of the Infinite Loop?? technology and have agreed to form a 50/50 joint venture for the European deployment of Loop's technology. Under the terms of the agreement, which has been signed following the completion by Reed of extensive operational, technical, ESG, and legal due diligence, Reed will provide capital as follows: ?10 million investment in a Convertible Preferred Security to be issued by Loop, which contains a 13% PIK dividend rate and 5-year term; ?25 million loan to Loop in two equal tranches - first tranche to support global deployment opportunities paid at closing and second tranche to support European deployment opportunities paid in the following 12 months with both tranches having a 13% PIK interest rate and 3-year term.

Loop is also concurrently negotiating financing with a governmental agency in order to complete the Company's required financing for its planned monomer facility in India. The closing of the transaction is subject to the fulfillment of certain closing conditions, principally the conditions that (i) Reed shall have successfully completed its first capital raising for its fund; and (ii) Loop shall have received a binding financing commitment from a governmental agency.