Oct 16, 2026 earnings call — Resizing India commercial plant and financing focus
Company cut the first India facility from 70 thousand kilotons to 45 thousand kilotons per annum to lower capital needs and speed construction.
Revenue $0.0B (est $0.0B) · EPS $-0.06 (est $-0.06)
Key quotes
"Our engineering joint venture with Ester Industries has made the decision to reduce the size of the first facility in India from 70 thousand kilotons to 45 thousand kilotons per annum."
"To address our capital needs and secure funding for Loop's equity contribution to our India joint venture, our board formed a special committee in September 2026."
"And so, you know, we are very comfortable that there is enough feedstock for a total of at least 170 thousand tons in the area, so we would be able to grow the second facility to 125 thousand tons."
Analyst Q&A 4
revised project cost and equity
Q (John Hickman · Landenberg): He asked for the revised total project cost and the new equity contribution, and asked if they can raise the financing and meet the construction timeline.
A: The final cost estimate will be completed in the coming weeks and management said the new cost will be significantly lower than the 70 thousand-ton plant. Construction, startup, and commissioning take 20 months, so if funding starts at the beginning of 27 calendar year the plant would be producing commercially by the end of 2028. Management also said Loop is targeting about $20 million as its portion of the equity contribution and is engaged with advisers and interested investors, but cannot promise until financing is secured.
"Well, the Toyo group that has been hired to complete the final cost estimate, will be completing that in the coming weeks." — Daniel Solomita (CEO)
impact of downsizing on debt financing
Q (Gerard Sweeney · Roth Capital): He asked whether the smaller facility size affects the debt financing in India and whether they are pursuing alternative financing; also asked about timing for the financing.
A: Management said lenders view the downsizing positively because the amount of debt needed is lower, and that their LOIs and signed contracts should satisfy debt lenders. They are flexible on the form of capital and expect an equity component (straight equity or convertible), and their goal is to have financing in place before breaking ground in the first quarter of next year.
"I would say to that, Jerry, that it is only viewed as a positive by the debt lenders." — Daniel Solomita (CEO)
contracted sales and second plant size
Q (Marvin Wolff · Paradigm Capital): He asked what percent of the 45 thousand ton plant is contracted, whether a smaller first plant means a larger second plant, and when detailed engineering and a firm number will be ready.
A: Management said that, counting signed contracts and LOIs, they are over a threshold of 50% of the facility sold. They can make the second plant larger because feedstock availability is the gating item; they believe there is enough feedstock for at least 170 thousand tons in the area and could grow the second facility to 125 thousand tons so the two facilities' total output would remain the same. They also said downsizing does not materially change the chemistry costs and that the detailed engineering and final number should be available in the coming weeks, definitely before calendar year end.
"between the LOIs that we have signed and the contracts that we have signed and the commitments we have today, we are over a threshold of 50% of the facility sold." — Daniel Solomita (CEO)
how equity share is calculated now
Q (Varyk Kutnick · Divide Capital Partners): He asked if equity needs should scale proportionally with the capacity cut and whether Loop's equity contribution should now be near $12 million; he also asked how much Loop has already contributed.
A: Management explained banks would likely finance 70% of the project, leaving 30% as equity split evenly between Loop and the JV partner, so Loop's share would be about 15% of the total project cost. They said the old larger project numbers implied a higher equity need (for a 165 to 170 million facility that 15% would have been in the 25 to 30 range), the equity amount will come down though not exactly proportional, and Loop has already contributed in the kind of 3 to $5 million range, so the remaining need would be lower.
"And so the remaining 30% is gonna be equity, and that is gonna be split evenly between Loop and Esther, who is our JV partner." — Spencer Hart (CFO)