Loop Industries (NASDAQ:LOOP) saw its stock rise 10.3% in after-hours trading Wednesday following an announcement that its fully owned subsidiary, Loop Canada Inc., secured government support for its plastic recycling technology.
The company said Loop Canada will receive up to C$2.92 million in funding and advisory services through the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). The package is non-dilutive and is intended to underpin efforts to scale the Infinite Loop technology platform.
Loop described the award as part of a multi-year project that will advance its proprietary technology platform while supporting the company’s move toward commercial-scale deployment. Company statements said the financing will be used to back engineering work, scale-up activities, improvements in operational efficiency, and deployment efforts for the Infinite Loop system.
In addition to technical and engineering support, Loop said the NRC IRAP backing will fund operational readiness initiatives and help reduce overhead outlays in the run-up to commercialization.
"This project will enable us to further validate our technology platform and scale-up strategy," said Daniel Solomita, Founder and Chief Executive Officer of Loop Industries. "The support from NRC IRAP will help strengthen our operational and technical foundation as we prepare for broader deployment."
Loop Industries develops technology intended to enable circular manufacturing of plastic and polyester. The company said the NRC IRAP funds were provided through the program’s Clean Technology initiative, which supports firms working on environmental challenges.
At a glance, the announcement links a modest but specific government award to near-term operational and engineering priorities. The funding is explicitly non-dilutive and targeted at preparing the Infinite Loop technology for broader commercial use, while advisory services are intended to support execution across technical and operational dimensions.
Market reaction was immediate in extended trading, where the stock recorded the stated after-hours increase. The company framed the award as strengthening both its technical validation efforts and its scale-up plan as it moves toward commercialization.
Details provided by the company indicate the funding will be used across scale-up, engineering, operational efficiency, and deployment activities, without expanding on timelines or additional milestones beyond characterizing the project as multi-year.