Loop launched an independent review of its course of on Monday that Hindenburg mentioned not directly confirms the ineffectiveness of its so-called pure PET plastics comprised of “100% recycled content material.”
Though the assessment was meant to spotlight the effectiveness of Loop’s know-how, a disclaimer on the finish of the submitting states the verification was not meant to validate the yields, or financial viability of the method. That, Hindenburg mentioned, exhibits its evaluation was largely meaningless.
“Data on purity with out value and yield is incomplete to the purpose of being irrelevant,” the report mentioned. Hindenburg mentioned a former Loop worker substantiated that declare, by saying the assessment means nothing if quantitative facets of the method are absent.
The short-seller known as out Loop for utilizing the phrase “pure” too usually in its assessment. In Loop’s second-quarter SEC filing, the corporate claims its recycling course of has “persistently excessive monomer yields, wonderful purity, and improved conversion prices.”
Hindenburg famous one other veteran chemistry specialist saying that Loop’s unbiased assessment was “non-technical advertising and marketing materials” and “very deceptive.” He concluded that it’s unsuitable to declare Loop’s course of as environment friendly and cost-effective based mostly on the data supplied in its assessment.
Hindenburg published a report in October that said Loop’s “revolutionary” know-how inflates its actual capabilities. That despatched the corporate’s shares decrease by 39% on the time. The short-seller has additionally known as out EV-makers Nikola and Chinese automaker Kandi for deceptive traders.
Loop Industries didn’t instantly reply to Enterprise Insider’s request for remark.
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