Why Shares of Loop Industries Are Surging Today
Shares of the sustainable-plastics company Loop Industries (NASDAQ: LOOP) had surged more than 31% as of 11:20 a.m. EDT today after the company announced a strategic partnership with the Asian conglomerate SK3 Group (OTCMKTS:SKTO).
A subsidiary of the SK3 Group called SK Global Chemical agreed to take a 10% stake in Loop Industries by purchasing roughly 4.71 million new treasury common shares at $12 per share for a total price of $56.5 million. SK Global will also have the option to purchase more shares of the company in coming months.
Loop plans to put the money toward building its planned Infinite Loop factory at a recently acquired site in Québec.
Source Fool.com
