VANCOUVER, BC / ACCESSWIRE / May 23, 2024 / Loop Energy Inc. ("Loop" or the "Company") (TSX:LPEN) today provides the following update on the strategic review process:
- The Company has limited financial resources.
- In order to extend its limited financial resources, the Company has reduced its workforce and now employs less than 15 people worldwide.
- The Company has engaged Alvarez & Marsal Canada ULC ("A&M") to advise the Company's Management and Board on strategic alternatives that may be available to the Company.
- If the Company is unable to raise additional capital, either through the sale of assets or the raising of additional funds, it may be required to consider alternatives which may include proceeding with an orderly winding-down of its operations that would not see Loop continue to operate as a going concern.
Forward-Looking Warning
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflect management's current expectations and projections regarding future events. Forward looking information includes statements related to the next steps for Loop's strategic review process. Forward-looking information is based on a number of assumptions (including without limitation assumptions with respect to negotiations with third parties, the current and future performance of the Company's products, growth in demand for the Company's products and the Company's ability to execute on its current strategy), and is subject to a number of risks and uncertainties, many of which are beyond the Company's control and could cause actual results and events to vary materially from those that are disclosed, or implied, by such forward-looking information. Such risks and uncertainties include, but are not limited to, risks associated with, and uncertainty regarding, the realization of costs savings from implementation of the Company's operating cost reduction program and benefits derived therefrom, the realization of electrification of transportation and hydrogen adoption rates, the elimination of diesel fuel and ongoing government support of such hydrocarbon fuels, the expected growth in demand for fuel cells in the commercial transportation market, our ability to obtain future patent grants for our proprietary technology and the effectiveness of current and future patents in protecting our technology as well as the other risk factors discussed under "Risk Factors" in the Company's Annual Information Form dated March 21, 2024 and in its other disclosure documents. Loop Energy disclaims any obligation to update these forward-looking statements.
Loop Energy Investor and Media Inquiries:
Paul Cataford | investors@loopenergy.com
SOURCE: Loop Energy Inc
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