Societe Generale has reached an agreement to acquire 75% of Reed Management SAS (Reed), an operation that will ensure the necessary funding for Reed’s planned investments. This acquisition guarantees an initial financing package of 250 million euros, a figure that could increase to 350 million euros, provided that the usual closing conditions are met and regulatory approval is obtained.
This transaction is a crucial step in the collaboration between Reed and Loop Industries, Inc., a clean technology company whose mission is to accelerate the circular economy of plastics by manufacturing 100% recycled PET. Loop has announced that this integration will secure funding for the European expansion of its technology and enable the phased financing described in its agreement with Reed, previously announced on May 30, 2024.
Under the terms of the agreement, Reed will contribute 10 million euros to Loop through an investment in a convertible preferred security with a 13% dividend rate and a five-year term. This capital can be converted into Loop shares at $4.75 per share or can be repaid in cash. In addition, Reed will provide a loan of 25 million euros to Loop in two equal tranches: the first will be disbursed at closing and the second within 12 months, both with a PIK interest rate of 13% and a three-year term.
Julien Touati, CEO of Reed, expressed his satisfaction with this milestone and highlighted the importance of cooperation with Loop for the implementation of their partnership. Daniel Solomita, Founder and CEO of Loop Industries, emphasized that having Societe Generale as an investor will elevate Loop’s positioning as they deploy their technology in markets like India and Europe. This funding will also cover the capital needed for the installation of Infinite Loop™ India and Loop’s operating expenses before the facility is operational.
Loop Industries is known for its patented technology that depolymerizes PET plastic waste and polyester fiber to create high-quality PET resin, contributing to the global movement towards a circular economy and significantly reducing plastic waste. The company is listed on the NASDAQ Global Market under the symbol “LOOP.”
This agreement represents a significant advancement not only for Reed and Societe Generale, but also for the plastic recycling industry, as it promotes the development of sustainable technologies and the achievement of global sustainability goals.
via: MiMub in Spanish
