Loop Industries, a clean technology company aiming to manufacture 100% recycled polyethylene terephthalate (PET) plastic and polyester fiber, signed a non-binding Memorandum of Understanding(MOU) with Reed Management, a European investment firm focuses on high impact and technology-enabled infrastructure, for non-dilu-tive capital.

The two companies intend to form a strategic long-term partnership through the establishment of a 50/50 joint venture to com-mercialize Infinite Loop technology in Europe.

The planned partnership leverages Reed's in-depth industry experience in the development and financing of infrastruc-ture projects throughout Europe, as well as their established financing relationships with major institutions.

Under the MOU, Reed intends to provide financing of US$66 million non-dilutive capital. Of this amount, half of it is to be invested in the joint venture while the remaining half is to be provide to cover initial costs to develop projects in Europe, including the construction of an Infinite Loop plant in Saint-Avold, France.

The transaction is expected to close by the end of March 2024.