To counter accusations that its technology claims are bogus, Loop Industries has released the results of an independent review confirming its PET depolymerization process works.
The publicly traded company issued a press release on Dec. 14 noting that Quebec-based research organization Kemitek confirmed Loop’s Generation II process breaks down scrap PET into dimethyl terephthalate (“DMT”) and monoethylene glycol (“MEG”) streams that are pure enough to be used to make new PET. Loop, which is based in Montreal, also released to investors a copy of Kemitek’s report.
“Kemitek’s findings through this verification allow us to attest to the capacity of Loop’s technology to produce pure monomers within their specifications,” the report concluded. “Kemitek conducted this verification in an independent manner using rigorous methodology and we ensured process integrity during the three-week testing period via surveillance, sampling and seals.”
The analysis comes after short seller Hindenburg Research assailed Loop in an October report, claiming the company is all “smoke and mirrors” with no viable technology. As a short seller, Hindenburg Research stood to make money if Loop’s stock price dropped, which it did after the report was issued.
Hindenburg said its investigation relied partly on interviews with former employees who suggested Loop was being dishonest about the results of its R&D.
Following the report, the U.S. Securities and Exchange Commission issued a subpoena for Loop’s records. Loop is also now facing lawsuits from investors.
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