Loop Industries Announces License, Marketing and Services Agreements with ELITe

What Happened
Loop Industries, Inc. (LOOP) announced on Aug. 13, 2026 that it entered into three related agreements with ELITe and Ester: a License Agreement (granting ELITe rights to Loop’s depolymerization technology to build and operate licensed manufacturing facilities in India and other mutually agreed territories), a Marketing Agreement (appointing Loop as ELITe’s exclusive sales, marketing and promotional representative for Licensed Products), and a Services Agreement between ELITe and Ester (under which Ester will provide operational and project services and license know‑how for continuous polymerization). Royalties and fees under these agreements are tiered as percentages of annual net sales of licensed products (rDMT, rMEG and specialty polymers), with special minimum/maximum payment mechanics once sales exceed $500 million and renegotiation provisions above $2 billion. The agreements are generally perpetual (subject to termination for specified breaches) and payments commence at the date of first commercial sale under the License Agreement.

Key Details

• Agreements entered into on August 13, 2026 between Loop, ELITe and Ester.
• License: exclusive (with exceptions), non-transferable, perpetual license to ELITe to manufacture and sell rDMT, rMEG and specialty polymers in India and other agreed territories; royalties paid as tiered % of annual net sales.
• Sales/Marketing: Loop is ELITe’s exclusive sales/marketing representative and sets prices/contracts; receives tiered marketing service fees based on transferred contracts.
• Fees/Royalties: tiered percentage rates decline at higher revenue levels; once annual net sales exceed $500 million, payments are subject to minimum and maximum annual amounts; rates for sales > $2 billion require good‑faith negotiation. Royalty/fee payments commence at first commercial sale (royalty commencement date).
• Services: Ester will supply post‑incorporation, project management and operational services and license its continuous polymerization know‑how to ELITe; Ester’s fees follow the same tiered/threshold structure and begin on the royalty commencement date.
• Termination: agreements are indefinite but may be terminated for material breaches (including IP infringement, confidentiality breaches, or willful payment defaults), subject to notice and cure periods.

Why It Matters
These agreements create a potential ongoing revenue stream for Loop through royalties and marketing fees tied to commercial sales of recycled PET feedstock and related polymer products (rDMT, rMEG). The structure ties Loop’s revenues to ELITe’s commercial success and includes clear payment thresholds ($500M and $2B triggers) that affect minimum/maximum payments and renegotiation rights. For investors, the filing signals commercialization progress and a pathway to scale in India and potentially other territories, while also showing Loop is licensing key technology (reducing direct operating risk but also relying on partners to execute). The full agreements will be filed as exhibits to a future periodic report for more detail.