An internal investigation by giant Danone on Loop Industries

The multinational food company Danone announces the launch of an internal investigation to shed light on the activities that link it to Loop Industries of Terrebonne, targeted Tuesday by a devastating report from Hindenburg Research.

• Read also: Loop Industries: damning report for a local company

“We take note of the results of the Hindenburg Research report and we will carry out an internal investigation as well as the necessary verifications,” the French multinational said yesterday, in a written statement in response to our questions the day before. .

“Smoke screen”

On Tuesday, the American Hindenburg Research released a damning report on Quebec’s Loop Industries, based on company documents, as well as on a series of interviews with ex-employees, partners of business and industry experts.

The big boss of Loop Industries, Daniel Solomita, in the company's plant in Terrebonne.

Screenshot, TVA News

The big boss of Loop Industries, Daniel Solomita, in the company’s plant in Terrebonne.

“Loop Industries has never generated revenue, but presents itself as a technological innovator with a ‘proven’ solution that ‘leads the revolution in sustainable plastics’. Our research, says Hindenburg, indicates that Loop is just a smokescreen without viable technology. “

In addition, the authors also predict that Loop’s value will drop to zero when the company’s cash on hand – US $ 48 million – runs out. This is enough to cause the fall of Loop on the Nasdaq, without it really managing to recover since.

Partnership with Danone

As it has done with several other large companies in recent years (PepsiCo, L’Oréal, Coca-Cola, etc.), Loop Industries boasted of having entered into a partnership agreement with Danone.

This is confirmed by the food giant: “Danone has entered into partnerships with several suppliers of recycled materials, including Loop Industries, in order to explore solutions enabling Danone to achieve its 2025 target on recycled packaging. “

Still in writing, the company adds without details, having launched “a small pilot production of bottles recycled with plastic supplied by Loop Industries”, in order to explore the technical feasibility of using its plastic.

Finally, informed of the results of Hindenburg’s investigation, Danone concludes by affirming that it intends to launch “an internal investigation” and to carry out “the necessary verifications”.

Loop Industries stock closed yesterday at US $ 7.63 on the New York Technology Exchange, Nasdaq, up 1.06% from the previous day. Since Tuesday, the value of the share of the Quebec company has fallen 34.2%.

The AMF will look into Loop Industries

Remained silent until then, the Autorité des marchés financiers (AMF) finally indicated yesterday that it intended to look into Loop Industries, while avoiding on the other hand to undertake to investigate.

Shortly after 3 pm, its spokesperson Sylvain Théberge sent us the following statement: “The AMF intends to examine the information which has circulated in recent hours with regard to Loop Industries. We will not comment further. “

Hindenburg Research said Tuesday it submitted its report to the United States Securities and Exchange Commission (SEC).

Joined by The newspaper On Wednesday, spokeswoman Judith Burns declined to say whether or not the SEC had opened an investigation into Loop.

–With Sylvain Larocque

About Victoria Smith

Victoria Smith who hails from Toronto, Canada currently runs this news portofolio who completed Masters in Political science from University of Toronto. She started her career with BBC then relocated to TorontoStar as senior political reporter. She is caring and hardworking.

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