MONTREAL – Canadian plastic and polyester recycling company, Loop Industries, has seen its share price plummet by a third after a report by short-seller Hindenberg Research claimed Loop’s recycling technology capabilities are “fiction.”
Loop claims to use proprietary technology that can break down PET plastics into building blocks to be recycled. It has been a signatory of the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment since 2018 whereby it committed to increase the available supply of PET plastic and polyester fibre made from 100 per cent recycled content for use by consumer goods companies by 2025.
However, Hindenburg Research carried out a six-month investigation, interviewing former employees, competitors, industry experts, and company partners of Loop Industries.
Its damning report concluded that, “Loop Industries has never generated revenue, yet calls itself a technology innovator with a ‘proven’ solution that is ‘leading the sustainable plastic revolution.’
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