RTTNews | Oct 13, 2020 10:04AM EDT

10:03 Tuesday, October 13, 2020 (RTTNews.com) - Shares of Loop Industries, Inc. (LOOP) tanked nearly 35% on Tuesday morning. There was no news from the company. LOOP is currently trading at $7.58, down $4.03 or 34.73%, on the Nasdaq.

Separately, short seller Hindenburg Research in a report called the plastics recycling company's technology as "fiction."

Loop Industries focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It polymerized monomers into virgin-quality PET plastic for use in food-grade plastic packaging, such as water and carbonated soft drinks bottles, and containers for food and other consumer products.

The company has several food, beverage and beauty product giants as customers, including Coca-Cola, PepsiCo, and L'Oreal.

According to Hindenburg, based on information collected from former Loop employees, plastics experts, competitors, and company partners, the company's technology is no more efficient or cost effective than traditional PET recycling methods.

"Loop Industries has never generated revenue, yet calls itself a technology innovator with a "proven" solution that is "leading the sustainable plastic revolution". Our research indicates that Loop is smoke and mirrors with no viable technology," the report says.

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