Founder and CEO Daniel Solomita reported that Loop’s Infinite Loop India manufacturing facility remains on budget and on schedule, with construction set to complete by year-end 2027. The plant’s timing is designed to align with new European recycled-content regulations due to begin enforcement in 2028. Loop has engaged Toyo, a major Japanese engineering and construction firm, to lead detailed engineering from November 1 through the construction phase. The facility is expected to serve five to six customers, with anchor contracts already secured with Nike and Tyrell Plus and negotiations underway with several apparel and consumer packaged goods companies.

During the quarter, Loop executed a multi-year offtake agreement with Nike for a fixed annual volume of Loop’s textile-to-textile polyester resin, “Twist,” at a predetermined price. The contract includes a take-or-pay commitment, ensuring Nike will pay a percentage of the sales price even if it does not accept delivery. This arrangement anchors the India facility’s capacity and underscores growing demand for recycled textile inputs driven by evolving regulations in Europe targeting end-of-life garment waste.

Loop is adapting its India plant design into a modular construction approach for its European facility to achieve capital expenditure savings of nearly 50% compared with traditional stick-built projects. The company is negotiating a lead site in Germany—one of three finalists—expected to be finalized by early February. That site already possesses significant utility infrastructure, a key cost driver for chemical plants. Separately, Loop’s partner holding the European license expects to generate meaningful engineering-service revenue and milestone payments over the next three years, which management believes will cover the company’s back-office expenses during the preoperative period.

Loop continues to advance debt syndication for the India project, having received multiple term sheets from multilateral development banks, sovereign wealth funds and commercial banks. The targeted debt package totals $130 million, representing 70% of the project’s financing structure, with Loop contributing approximately $28 million of equity. In Q3 fiscal 2026, cash operating expenses fell to $2.2 million, down $1.1 million year-over-year, and the company closed the quarter with $7.7 million in total liquidity. Loop also appointed Spencer Hart as CFO; Hart brings 30 years of investment banking experience and will lead capital-raising initiatives while pursuing further expense reductions.