Loop Industries, Inc. (NASDAQ:LOOP) shares are trading lower after hours Tuesday after the company raised substantial doubt about its ability to continue as a going concern and said it will need additional financing.
LOOP shares fell 8.5% in after-hours trading to $0.92 after closing the regular session at $1.00.
Loop Industries is a recycling technology company that turns PET plastic waste and polyester textiles into recycled materials for packaging, clothing and other products. The company is working to commercialize its technology through projects in India and Europe.
Going Concern Warning
In its annual report released Tuesday, Loop Industries stated that management determined its existing cash resources, together with amounts available under its undrawn credit facility, will not be sufficient to fund ongoing operations, obligations and commitments for at least the next 12 months.
The company said these conditions raise substantial doubt about its ability to continue as a going concern and noted that future operations will depend on securing additional financing through a combination of debt, equity, joint ventures and potential government incentive programs.
Loop also acknowledged that it has incurred losses since inception and reported a net loss of $12.2 million for fiscal 2026 while generating limited revenue as it continues to commercialize its proprietary plastic recycling technology.
Commercialization Efforts Continue
Despite the funding concerns, Loop continues to advance its growth strategy through its India joint venture with Ester Industries and its European partnership with Reed Societe Generale Group.
The company is developing a planned 70,000-ton-per-year recycling facility in India, which is expected to require approximately $165 million to $170 million of total investment and is currently targeting operational startup in calendar 2028.
Loop also recently completed the sale of its first technology license in Europe, generating an initial payment of approximately $10.4 million and providing additional future milestone opportunities.
Trading Analysis
Loop Industries currently has a market capitalization of approximately $48.38 million. The stock has a 52-week high of $2.10 and a 52-week low of $0.88.
Shares are down approximately 40.48% over the past year.
Price Action: According to market data, LOOP closed Tuesday’s regular trading session at $1.00. Shares fell an additional 8.5% in after-hours trading to $0.92.
Benzinga Edge Stock Rankings indicate that LOOP shares currently maintain negative short-term, medium-term and long-term price trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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