RTTNews | Jun 23, 2021 10:23AM EDT

10:23 Wednesday, June 23, 2021 (RTTNews.com) - Shares of Loop Industries, Inc. (LOOP) are climbing more than 14% Wednesday morning after the company said SK Global Chemical has agreed to acquire a 10% stake in the company to accelerate the commercialization of its plastic recycling technology in Asia.

Loop and SKGC intend to form a joint venture to build sustainable PET plastic and polyester fiber manufacturing facilities throughout Asia.

As per the deal, SKGC will purchase 4.71 million new treasury common shares of Loop at $12 per share, for a total of $56.5 million.

Loop plans to use the proceeds for funding its planned Infinite Loop manufacturing facility at its recently acquired site in Bcancour, Qubec.

Under the terms of the Memorandum of Understanding, SK global chemical will own 51 percent of the joint venture and Loop will own 49 percent. Loop is also entitled to receive recurring royalty fee annually as a percentage of revenue from each facility for the use of its technology.

LOOP touched a new high of $15.50 this morning, before slipping to trade at $15.05 currently.

Read the original article on RTTNews ( https://www.rttnews.com/3204462/loop-industries-touches-new-high-after-sk-global-chemical-decides-to-buy-10-stake.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com All Rights Reserved