LOOP - Earnings call transcript Q2 2025

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Loop Industries Second Quarter 2025 Earnings Call. My name is Emily, and I'll be coordinating your call today. [Operator Instructions] This conference is being recorded today, October 16, 2024, and the press release accompanying this conference call was issued yesterday, October 15, 2024.

are Chief Chief O'Dowd, Financial Investor today Solomita; Officer, Head call Relations. Mansour, Fady Officer; our Loop Executive Industries' Daniel of On and Kevin to the now over to would disclaimer turn I to forward-looking like Kevin read statements. a about conference ahead. go please Kevin,

Kevin O'Dowd

you, operator. Thank

results statements get These forward-looking forward-looking current to, may other the we operating statements financial will me started, may and plans, you the affect things, from the let statements events risks relate position. these that and industry involve Before meaning future expectations, call of Such today's trends remind that future include company's activities within differ expectations. and laws. and uncertainties and results securities materially among

in latest yesterday's Factors Relations of Copies XX-Q the Statements documents section Additional report report our SEC annual Investor Forward-Looking yesterday Risk and press or from risks concerning information statements contained and and our these Form with our the department. Form related are quarterly sec.gov release. XX-K on filed available and at these is and of uncertainties

I'd this call Solomita, Daniel to ahead, of turn Please Executive to Officer At over Chief Loop Daniel. the Industries. like time, go

Daniel Solomita

Thank for much you everyone. joining call. today's morning, Good very

the was quite talking significant for it Reed we've while quarter So -- Financing now. about us. pretty been a Obviously, has for a been it

at we're with the So last legs transaction of the Reed. concluding

other $XXX well. initial to of large additional Reed institution up from sources XX% acquired and going commitment Reed with bring the and financial Societe be French is we Generale, an announced, as raising million, As previously stake in potential financing $XXX Management to that million to

new transition Europe. excited about partnering their venture the for energy really in So with Reed we're in

for financing be and strategic they'll also building capacity in Loop financial partner for think a long-term our out I for Europe. and great partner

in close approval imminent. is scheduled Reed Regulatory transaction is on side to November. The

little There's a schedule, the going major. everything nothing there. is plan to bit but So a of according in delay

and the Loop in expecting from transaction will receive to entire financing November Reed. close the so And we're

go there Just any the foresee delays, myself lead one are to case and to company we but be would any of would whatsoever, don't lend on but anticipate in getting type from delay in a agreed case in financing other be million But mid-February there the through $X there case we insurance in delays, an our don't it's allow to liquidity have needed. it's the case until Reed, that policy any directors just any delays. of

Reed moving yes, company So we're the excited side. forward closing about the deal and the commercialization really on

our quarter, in working competitive in ideal saw the The India. on we've manufacturing, low-cost believe India PET that matter come the I up what really the plastics the price we been project couple PET diligently years down. location dramatically in CapExes still Most being the of for of facility, of the past no price and and saw go we COVID, world commodities of after is does.

companies a PET because years projects in plastics picked ESG inflation closely. focused consumer up, so looking rather picked interest up world were but high, and there's All as last lot and the COVID. very the at attractive all of were of than end So really didn't reality good rates looked delta cutting the costs a at prices on big that around of more those

oversupplying very, cheap and cheap PET. very so at the And virgin plastic in going because everyone back world started PET is prices buying China

projects lot sense on of a the put make seeing are just which too around expensive. pressure really that ones which therefore, ones And and world,

going strategy off the believe, allows be into Indian the to does, moving future. is in I in a big super having pay matter And PET competitive opportunity so really us, us price the no manufacturing what for to of low-cost time India,

been They've some of produce well. tons great other we India have have products, polyester India, PET PET across in products virgin XXXX. PET, since partner experience that making in Ester. have in They specialty in as and a multiple world. So They the facilities

great of the Ester. and So partner lot raw facilities of sourcing of the the material. construction with manufacturing, They a all low-cost of bring in

to with hired survey firm a a a We large engineering presence British to in able be India us. for do land

and criteria will around at across a and was petrochemical we world. the the to infrastructure, the looked our infrastructure low-cost manufacturing, facility part us is that Infrastructure, So so the near labor manufacturing for our roads, the from all to where really be plant. plant seaport our input will place to the polyester of most regions skilled because a labor implement of the important close the looking for which be main coming waste hubs industry. different would be will India textile force, exported good best polyester the force, for product feedstocks for bridges energy ability be The green low-cost as the really

around force, the province, world. Gujarat of the And study, for just up XX ended viewed so a and we the which did We sites went large north Mumbai different as low-cost skilled choosing the near petrochemical location out facility. is good It a force, labor, boxes, those really checks industry infrastructure, all the green seaport, in of labor lot that labor energy. of very area and

the energy facility of XXX% be source So from main will the biomass.

be of which main all replacing biomass, the -- our of husk. through natural is will the done all rice So gas

used supply having for polyester XXX% as waste really the is green us. of key product, which being XXX% the product And is energy is we're which for and a energy, When our sustainability manufacturing us. to at will renewable part chain. looking source, is primary the big fiber be biomass the So process rice fantastic close

significant a in secured day. it in plant already using processing we've our We're be facility. Montreal amount at we'll the every that fiber of polyester So

all suppliers. we We're have the qualifying about different of the the suppliers. knowledge different all So

especially fiber-grade us Surat waste from a resin basically factories enables province, in resin, polyester the which it's textile So special India, the waste. from offer the polyester to fiber which Gujarat customers, is made sewing a the product all area, to across very coming

So textile to textile recycling.

of is largest sustainable recycled materials is the the the future bottles they stay in, this on be to recycling. I brands The more industry, the of can and only that no the content get comes be water have need for going driver the going solution to polyester textile mechanical from business. regulation with a Today, as brands, bottle in apparel bottles comes longer recycling firmly believe But bottles. the industry. can to legislation as bottles in, recycling fiber into forcing textile

of of technology future. fiber Loop's to huge future the be the technology part able to Loop's for is a world So technology going the being to only technology produce to one able is of which the in brand fiber, supply and of our fiber-to-fiber

large new this for material all So the brands apparel them. dealing supplying and with wave

we see apparel from So a all interest brands. lot of the

India in of being their chain. supply all to And is close

That's garment. key for then to where is get after the a then has So turned resin into a spun into and sold, dyed that's really texturized, a fiber, us. then

India close chain, and all supply is being supply to that that So chain, critical. offers really of

So of and yes, forward forward, this engineering finalizing ground looking to exciting, packages moving in all be Financing on the Indian then be all project able and Reed execute is and be -- Financing of will facility. met, breaking the other the conditions our really all of financed to India. fully and Reed to project it's will on the we the of The

also we're PET, Health were needs obviously, which Certification very the from the food-grade market for approved, grade plastics. demand from Canada FDA high-quality side, In REACH bottle customer the material Loop's strong seeing that fiber-to-fiber approved but approved, industry,

also is Certification, a Grade qualification which plastics. higher We the have Pharmaceutical even food-grade than

focusing really time, There a a like I seeing the brands interested COVID seeing across come the little at bit looking costs are, after down, again, a are very lot ESG. of brands that kicked on than ESG board. we're were rather as now side. So down, And was of comes when on we're inflation cutting back coming inflation rates interest where interest as trend from said, slowly up

top beverage large all industry material. with working quality for So of are looking who customers the

in January. regulation recycled also in XXXX to XX% the are Europe now for where opportunity in So forced another XX%. starting put content content Recycled is beverage brands big European coming

That's India will push from be exported. our So me. that's be most of and big going material a to all from

hand Fady the the to it quick update CFO you on on I'll side a over to financials. give

Fady Mansour

difference quarter results were second million. our the and very units. noncash total our expenses reconcile help $X.X the baseline the Obviously, X to, you which you reconciliatory those our going XX, to comp, stock and operating Thank expense $XXX,XXX cash the Yes, between than -- higher financial X. items. our much, that's one guiding through but the That's Dan. for August ended share totaled been I'll options expenses expenses for related I've restricted There's is that stock-based quarter, obviously

and mostly had now for regulatory We had nonrecurring legal to component our of good shelf update prospectus is quarter expenses. X second the for about We filing. for years. The legal we're $XXX,XXX expenses

major for shareholders. had one an to update also our We S-X of

So of nonrecurring the to $XXX,XXX. legal we incurred expenses tune

which And totaled the third $XXX,XXX. costs, bucket is project

you sum of $X to items, those out or you get a we're X the $X the $X.X month. It's million under that first the So the quarter million. when X, those million back

of lion's of communicate we when $XXX cost, the The Loop. India obviously, we share out the that proud let's very backed we're million, for that at why So CapEx. that cost reason is say, of project a is, installed total

item. don't and of $XXX guiding. there through -- double that's and our is go other amounts count the CapEx million our P&L to Let's want we're it that P&L, say, Ester's are We that and but partner, what

the start focus we've towards bring of of turn to million our from year, about would already a rate run that to the closer million we bunch than $X savings an It's fiscal As annual or identified XX% emanating additional factors. next $XX million. $XX the

types to value. We're pulling draw different on all of levers

One is initiatives. continued productivity of obviously them

area tapping to in combination one fiscal reduction for is fees consulting year cost just look $XX believe operation we're us the continued government R&D in going to we lead second consolidation an and looking closer to for million The And of outsourced bridge the estate $XX India buckets between our of commercial services. and lab. and XXXX. is X that than we incentives The those next in million. get opportunities the into continue to the Real gap first reduce to that as comfortably now cost-saving we're some

On $X.X at and available of have of our sheet, line of cash the credit million disposal. balance liquidity, of million hand total we untapped $X still $X.X million on

got through CEO of As enough we've Daniel of contribution to, our million and liquidity our last potential Board Directors, to February. because alluded us from of the $X

that we us make So arrangement. that ample close sure Reed the gives time to

plan that November. in as transaction Daniel Again, we said, close to

but this happens that. So case absorber coincidence a we for spend in also same number. really delays, any of be by quarter current to shock foresee million, $X.X the don't the just cash there's is The

finalize we our our the So are fixed positioned we months are and -- all the that's to next arrangements. costs related And liquidity Reed to the couple back of downward. metrics until over well the office, trending handle

turn I'll it or Thank either that, With comments for Daniel or for Q&A. closing you. Kevin over to

Daniel Solomita

please Yes, go on Q&A. to

Operator

[Operator from Cormark. first Nick with question line comes today the Instructions] Our of Boychuk

Nicholas Boychuk

have share hear India in announcements Gujarat, Daniel, little the appreciate feedstock I'm on information might going a more now we to breaking And exact when it's that specifically when wondering time more lines visibility, understand agreements? when about opportunity, when we some bit on occur? I to if things be, are it's like details going the might offtake can little located. would hear if for or and site and bit ground but where you we

Daniel Solomita

Yes.

of feedstock, -- facility. significant amount secured already we've So the for we don't feedstock

generally press feedstock. we any don't releases make around So

for obviously that's are us. important something suppliers Our

coming feedstock sewing the all don't India, area. polyester of for we that which suppliers disclose So generally Surat side, in but across the is fiber it's really all factories from our waste

As the location. site November I have selection, site would to in sometime far the as final actual expect

working the We're to down just a on. those of sites Gujarat purchase in with pieces pricing we're few think land. negotiating that I to we're

that underway sometime in So for facility. would probably November. Engineering the is come

year, So sometime March is be breaking in the we'd when next first be ground the expecting half ground breaking on time to frame we're in of facility. done the probably

already be a now, seen contracts coming customer an said, because lot in prices power regulations milestones would the as uptick the XXXX. see XXXX. the in like PET in Right that well, is of the of contracts. starting QX of we'll probably in So We've pricing in, I customer XXXX, where

and So customers. with for before both how of XXXX customers, PET long-term will of the we react to supply us in see in our the those what's want locking and price for agreements coming January

So to the quarter happen we're that XXXX. expecting in of first

updates. off giving regular going construction and now, as the be updates we'll as But as yes, on schedule everything have So planned. those the soon right project for we is

Nicholas Boychuk

be on it's Great. maybe dynamics, a the an if of the helpful. color repolymerize Okay. on is you'll pricing you from DMT, going And India? about not the that supply-demand The what more think, little would monomer can MEG or like backdrop, happening or there? output whether of share have dynamic, I amount to the on impact industry to exactly Any or individual bit some have pretty

Daniel Solomita

I Yes. has industry flooding The which -- which a the is built been because is capacity, an industry, the PET cheap have said, PET you the marketplace. really interesting pure and up is amount to still very of like China virgin very major side, with supplier they're resin, tremendous And really virgin it's commodity world a PET. the the dynamic

general, in very, having is difficult virgin the So PET industry times. very

time at Recycled players are very very, having a is who on completely industry focused overcapacity look other China. material of virgin the landscape. by If PET, in the you difficult a solely they're different because the

high the food-grade up. for material So is pricing for in Europe recycled coming of material quality,

this we've the January, increase increase, XX% increase than significant price. From significant more a year. a until seen seen we've let's in October, say, a So

down a is across are Loop's of which Europe, more a quality as supply. lot recycled we we you we off how get the going to of quality the material that you with of a dirtier, more as is recycled see because where to premium mechanical because indexes there's What material get the recycling is PET can material pricing try use coming satisfy the contamination. and the dynamic mechanical And bales recycling, today, content the right the online now more much XX% is for

time are quality on So having side. the mechanical hard recyclers a the

up, is but going is down. quality going price So

for that is market to get in to the material, be the premium virgin brings RPET today. which the above segment Loop's able really what plus at it quality So is to index

the January everyone because going to for are where this And to mandate so XX% us, is the be of content. see recycled kind to waiting have prices of

us have good is good for very we diversified also a Now stuff the news -- the portfolio. that

pharmaceutical there's textile not textile to exist textile. offerings we really have whole grade the of to doesn't quality highest it the segment material material, have different We Textile today. because the food-grade that a different completely -- then the and today many is of

it And so -- they being they is textile textile it, they the brands apparel They able to get there. know textile the it's post-consumer coming. guys solution for And coming the don't their solution material. their brands, to where They for need need that they XXX% from as factories. the bottle them. to coming brands, it's do, need waste on to need the need a They a pressure, the feel get but as do much

see who even polluting the Google you'll top the all more the you symbol because haven't if our are has Today, water polluters people clothing in bottle, just pollution. as that But materials clothing recycle bottle realized there's construction. companies polluting of world, few the because is from as of because of water to and beverage they're and become different maybe besides polyester the really, the a some the complexity Loop players, way -- other able all smaller really be to technology of textile, no dies the a the

done ability textile textile like another players then the is no in that special supply today. us texturized fiber, the a said, to and to then able resin to being that close being And to be real of dyed India it garment, get for because there's those huge is India, having market do win in to spun a gets I all that's into that chain a into the turned already. in So the PET -- market polyester

opportunity is really customers important. So for having that really, the

Nicholas Boychuk

second closing here, time India have the you of of makes That the up Reed lines kind that Financing sticking for with with of or start not November in might have sense. you'll to the whether can us walk when allocating lines specifically lot when Okay. for well sending money timing start JV? capital to actually to And that a in you a through of and project

Daniel Solomita

the the mean, we're all because project all in like the money already costs feedstock. of regular there spending our for are project of I of today, part testing

of here. our processing bringing So from we're material it containers in India, full plant in

getting the customer. already out the So material to

we're that So of already. doing lot a

the Indian project. bulk costs end year. we're main already will towards incurring the of of the the But coming be the in for costs project So project

slowed Reed closing. the projects is what's regular being project at the all down not course. are taking happening. So not the of That's the But because due

for going of bulk that project securing land really QX in everything paying and process shovels of -- The construction, big XXXX time else. in the lead costs that's come equipment to long when the and we're getting are to done, ground, yield when the going ordering

Unknown Executive

firms guess accounting detailed which banking also debt for India, is the we've in to a India the in project call needs of other them hired I syndicate the what X DPR, what one financing. the do, update to they big report, is provide

already them. the So been already engaged we've that's engaged by --

we're on well. So as that working

Operator

comes Sweeney question next Capital. with of the The from Gerry ROTH line

Gerard Sweeney

What want hurdles And I from to start is what's once the to Loop? come then Reed. to Reed for the closed, with funding line remain time closing? for it

Daniel Solomita

Yes.

thing constant the of takes of imminently. the cash. approval, happens, involved, working Loop get -- get them we're that's with happen few to been August. that Once we're So the the communication approval all the administrative only is to regulatory for left since closing parties And in on transaction, final work then expecting weeks it for a which and they've the regulatory the to

So that's in transaction expecting where we're entire to the close November.

Gerard Sweeney

tranches? described remains And with X as the different previously transaction

Daniel Solomita

amounts CPS, Loop in tranche, tranches. which $X.XX now follow to there's from Yes, initial is PIK convertible at to that. share which at be million EUR security, separate other and a the a in the preferred XX% years into XX then There's shares X going to going be there's the after interest, converts

Gerard Sweeney

it. Got

maybe side, areas other of in terms -- Just of to the very license alternative the India go are there technology to to at or project. mean, looking parties? as then What good world an is other interested option And potentially I routes curious down? to Okay. you

Daniel Solomita

that of well We've materials. Yes, build has Montreal interest. there's tested the thing for been different X done one high running qualified very really is years. We've at lot thousands technology. rate. a operated a We plant feedstocks, here different Loop The the in of

showing So great or I having technology financial at the time, technology. haven't have think anyone a marketplace we does diligence takes great the understand that the on investors, we story. job that have we done of working In the due on And story technology. the knows investors financial great looks

to the technology better. of So that anyone understands that's something power Loop's look side, lot But a on have a do really we the technology. takes

And so for governments other into different said, looking to with to there's partner of I -- the opportunities license the a we us, lot have Like tons able back of slowly, that forefront companies. sustainability industrial very other is be lot of technology, now or either companies a coming partners.

It have visit, a -- of lot a to of a It now. a we takes relationships. interest So time. have lot they do right diligences. lot due of lot technical of work develop takes these to

lot now. of right we're on that that, So working there's a

So always look there's our government that's where the We of how rest and we'll we'll to we said, or business, bringing allocation big capital licensing into where higher there's right? cost the that's a focus partnership. significant technology the to manufacturing, goes. part involvement low-cost where more going then in But and manufacturing see countries that be want our to

well. that that, a of as working we're on So there's lot

Gerard Sweeney

to more you be or with with at another a once bit sense. for path little or facility? you and do a would a makes you. agreements? Loop partner Would Obviously, up you gets the of would and India licensing company That looking Or question. mean, to forward-looking facility -- Ester JV this think build forefront build do another second Got whether I India think look is running. forward

Daniel Solomita

facility. definitely So in for second India, we're a looking

in great a great question, So Gerry. that's question. a That's India,

for So enough in the land India, we're X buying is facilities.

to planning is dedicated the sustainable XXXX, for be be textile-to-textile a XX% because on to fiber mandates in we're materials second when important. going as XXX% the expansion fiber really XXXX which by So side. that's of to Brands have fiber India, would fiber

coming So XXXX. is that in pressure

will have grade facility bottle blend, submonomers. So a grade, fiber the first

larger emerging be fiber, be than tons. because XXX% the scale Second XX,XXX to really facility, an textile which probably would that's We technology market. XXX,XXX easily tons, fiber to to could dedicated would textile

like -- have for have we projects different world. the we said, I inbound And opportunities around of lots

partnership at for companies industrial about, about problems. a and -- have people end to need facilities plastic other an solution inquiring it's have the with of because asking that putting like the infrastructure. have need We or SK we governments People the day, up are a

And more are so actively getting some find active trying in to a governments solution.

at financing a support higher of sense, could cost manufacturing cost the down, if to able brings the be government you So a company look government to facility. because makes subsidies

different lot a So a partners we partners world of of different with the lot or the conversations have potential around around world.

go. we how see we'll So

far manufacturing, parts India, Vietnam put of is right? There world industry, definitely, interesting could really how to then there. see see -- textile tariffs be low-cost world there's on far more is plastics. And opportunity we'll the Asia another the But goes, cases other textile where there's how where we'll

as have certain drag on could open much see world. won't of an a EV to parts putting like of as advantage you the because in the car in prices tariffs other up protect right, industry, China of that opportunities industries, So or much

technology, better will that always we get the grace once we technology. the improve saving the technology because have continually -- technology, So great at and have you our that's

open to to different these to us allows world and all that avenues adjust and the be that So way agile changes. ready up the

Operator

Bryan, Garnier Co. & from comes with question of [indiscernible] the next line The

Unknown Analyst

us now? sort in color in structure America. back North on question, more considering American right agreement. maybe your what Could being color you question on local us projects potential second are licensing developments the latest local First are give Could you you And specific -- circling on of more on market? North give you your what are

Daniel Solomita

Yes.

there's it's or as ways a models licensing, do lot to As licensing. interesting. of different far different really

of have in something unique we work is well. percentage the is one an us, to customer relationships bring that that's there's licensing payment, interesting. of definitely a as always A Loop goes the thing because which is For revenue upfront lot side. -- into because

of with relationships a customer brands. We strong have lot the

-- joint we all So for in a do in example, India, lot of the the venture sales. of like do we

is the partner. together the sales the all comes We Ester manufacturing work Loop. product, through So on but

licensing revenue. they of There's an And get fees, if when lot us you're helping that there's charge. ways. licensing, a sales on different annual upfront would want then an But there's basis, extra involved to of a on percentage the side, be potential in

So going tailored. lot be talking Europe, That's ways PET It's prices to to do really about there's say, a today, be in of to It's different a able you're right? USD lot EUR depend it. PET. driving going really today, factor, the to the X,XXX, price X,XXX. let's about so of

because to numbers be it make CapEx price. of the those So Europe in spending big PET low challenging

expecting to in move $X,XXX regulation prices the the see in. $X,XXX when early the maybe XXXX We're into range PET comes range,

be technology. that revenue, interested whoever licensing depends technology technology able sure in and license got to really the your profit has to it you be to So that make is your enough licensing

it. So expecting the People EUR whatsoever. going big I think realistic to are X,XXX, don't that is PET pricing at into that's play a factor be to prices

any completely projections of see now is I and pay a type which any prices, right lot type think to those So of false those willing why in you projects Europe. of don't producer stalling are customers or

in We a in to Yes, love would in seeing something We've talking and best couple question, the said North do And we're to of we Quebec looking do North for Canada. something. opportunity your to of America, opportunities second us. want where always is different America. part the

would So how a in we'll facility love plays we one the than see larger that but to Montreal. scale have always we do out,

Operator

question next The from Marvin Wolff Paradigm comes with Capital.

Marvin Wolff

this calendar If Loop that roll fiscal okay, to 'XX, the in a be using do so year, in had your time you plants -- operating would 'XX how so I Yes. technology? many question. October we out point see the

Daniel Solomita

end running It running. Well, have facility potentially and a facility we'd a get the the up year. will have and probably by that we next sure, sometime at takes project project And second to second about we done. would well, X a time as Indian up assuming of start years for

facilities be So we would X potentially at running.

Marvin Wolff

the plant Okay. at French And that would time? where be

Daniel Solomita

French interesting question. plant, that's an

where going the in right down really put X,XXX in a why that's is because determining a PET projects. of you European of to That's slowed Europe be see all to the now, and Europe have We EUR prices kind right the to lot pricing look of pricing. be. projects see ton now factor going pressure, being being and for

Now power let's about, is what of projects, the a That's big be XXXX the in what that's that see deployment that to then -- -- pricing -- to come accelerate is if see back, happens going something where was make $X,XXX waiting we everyone about would around the drop dropped PET $X,XXX somewhere in prices I XXXX. COVID get to that down talking a to and we After being ton. Marvin. times, it were talking ton but

car great stalled. projects when on to world those are All what similar pressure these around all crashing batteries, happened were right? at now certain was of price, lot lithium projects electric of projects with and came down a put that globally, So lithium the

the we're plastic So side. seeing the in thing same

where We're deployment early be to pricing big see in So really, that's Europe. the on driving is going 'XX. a factor going to in

Unknown Analyst

Do tariffs put think into Europeans substantial Chinese on the you will Western PET Europe? coming

Daniel Solomita

don't don't -- I think know. side, not virgin don't the on I think virgin I side. the

On XX% small the a tariff. they content. There recycled is recycled material, put this

to higher, around a do, seems tariff and I that on go to it. turns tried had back slaps of they're and China, or X% I know. going if -- then Prime out the tariff Minister If to they really coming like on X% today. it put don't think from China tariff Spain a pork Spain you it's Spanish like If the

see We'll where election don't will know, We we'll everyone all as really on where we'll don't I tariffs a another So but be mean, more that's put XXXX why wait-and-see I That but see out. could see. happens get how U.S. taking well. things. what be until see that's really is that something opportunity plays the to. know, we to approach

Unknown Analyst

what clarity sure year, of Yes. are be going to is be. some going can to XXXX we No, yes, I the more for with when issues think these tell

Daniel Solomita

coming are Yes, down. coming down. rates are coming interest are rates interest rates And Inflation down.

the refocus a -- I've the So refocus sustainability. from refocusing the big months brands seen past on few

buy For hey, I'm said, back way going bring a cost just from cheaper. it's us down, while, they profitability. my stuff the It's to into bring or virgin from to going all Indonesia China because

a that's coming that, interest inflation Now the now on renewed are rates coming rebalancing, there's down, focus the sustainability. down, is

be a So what for in you're PET us, about no see them, China few key with how India, to goes. best But And to we'll us to I that always The that manufacturing. compete directly the now, worrying low-cost manufacturing that. happens going matter allows been profitable. I've that's is Marvin, -- preaching India to way let's see like price, big for why the to said, and months do for that's low-cost

Unknown Analyst

doubt it. The sure. no of makes lot India For sense. a project There's about

be So higher these of if got of the the we we prices calendar lived in a XX world XXXX plant a because Regs, French where would sort start-up?

Daniel Solomita

about in. Yes, with right, Reed a somewhere And part big that's also around there. Reed, then bringing

forget, a is Reed financial. not Let's

but financial to a side a also there's ours Europe. to develop across projects Reed, of they're So partner

in European and So is Europe about CapEx market really important. knowledge having Reed's partnership the and projects and leadership building

Reed are projects, side, financial the the CapEx in Europe. besides putting these at at is really projects So guys up experienced

partner strategic deployment having the to a is as interesting. be on in side, but So a going partner, financial them the on Europe also side

the prices get So yes, to. let's where see

Operator

comes question [indiscernible]. next from Our Ivan

Unknown Analyst

transactions. X the couple position clarifying Just post of on a cash questions

the million of one, terms August So then help the going ending by I've needs a me accounts thinking you your question the on Could seen in spend had capital XX. about Indian trade during how of And quarter you number kind X.X approximately facility. payable be working second should we understand forward? increased

So if I help much sits be balances? of currently in the equipment, drag on machinery wouldn't your me it your a which the correctly, utilized warehouse, understand can can the in facility and you how be read so XX-Q cash direct Indian

Daniel Solomita

myself lead what from The million one a cash million available the was to loan $X plus $X.X in and cash directors. alluded to us, Fady of

very a million cash be after then So would which that initial after initial period Reed initial is would USD be subsequent short and tranche million, it's The $X.X in XX coming our in closes. Financing the there tranche cash.

some project. We also India government the for available have financing

It's out the paid through upfront. also India everything be spread not cash X-year So over has a to is period.

the from So forward transaction financing. we'll a close Reed subsequent once going perspective we and be the government cash fine

warehousing, only equipment mean, far polymerization technology, is technology. the as Loops really India no I the project As there's the in

polymerization us. the I So because to is India project equipment not equipment you're for the separate a alluding used the polymerization be think Ester project, would technology provides for that for

So have polymerization. the of they all

at because on which need need CapEx spend CapEx why the XX% the number that's warehousing polymerization the pieces used another project. equipment much eventually is will in lower equipment used have we on question? don't to we're definitely be be What to would of that that in for That So don't India that certain have you any project You that plant. going another working you of is the section, saying? are

Unknown Analyst

working your construction we Yes. thinking be capital And to just capital you to if India? the payable, and during in should post accounts could forward the Reed the clarity provide about going how period working clarify just some needs as on

Fady Mansour

can handle that I Daniel. one,

to. those lot there as the the right, in expenses, of my A alluded accounts came expenses expenses all lot end a did when -- the the and section an of you I legal You're that of them of at was the I payable, terms quarter. increase,

see up did payable. in spike accounts we So a our

guiding payments the figures of going happen in to the but months, to, next As capital Daniel working are couple to. the that we've in that's alluded been

we hand capital. So million funds have of $X.X including injection, liquidity to us and the cash through the with on February, get payments of working potential the to

at the So largely in they're going and months. our in to outflows couple you the quarter, ramp-up, the of that's of happen the of see end the these why next end be at and the quarter, things

there. It's that's all it, in So of call channel between part factored February XXXX. of our liquidity and, now

Daniel Solomita

as have well. ground of post -- And transaction, for construction pieces, post other breaking -- funds our financing with the the our enough the the facility, construction plus of and capital beginning government working Reed the we'll Reed

Operator

your and for everyone, you, today's participating for questions in discussion. Thank

Before turn Kevin closing call like the we remarks. I'd back for conclude, O'Dowd to to

Kevin O'Dowd

your for Loop. in questions and We're to sustainable value. all you committed interest Thank driving

to a and For have day. for look team. continued our any quarter. please you next further inquiries, your our sharing forward to Investor support, great progress Thank Relations reach We out

Daniel Solomita

everyone. you, Thank

Operator

may disconnect you, Thank and us concludes for everyone, now your you today. our call, joining This lines.

Loop Industries (LOOP) 16 Oct 242025 Q2 Earnings call transcript