Key Highlights

  • LOOP shares climbed about 57.39% in Thursday pre-market trading to $0.9763, up from a prior close near $0.6204.
  • The move follows an August 13, 2026 announcement that Loop signed an exclusive licensing agreement with India's ELITe, plus related Marketing and services agreements with Ester Industries' joint venture partner, granting perpetual rights to Loop's depolymerization technology across India and other territories in exchange for tiered Royalty and fee income.
  • The company remains a small, cash-constrained pre-commercial business: its most recent quarter (ended May 31, 2026) showed just $179,000 in revenue, a $3.385 million net loss, and only $1.06 million in cash against a $12.0 million stockholders' deficit.
  • Loop's India joint venture has secured a non-binding letter of intent for up to 15,000 metric tons per year of PET fiber-grade resin from a major global apparel brand, alongside continued engineering work with Toyo Engineering and a newly selected European Facility site at BASF's Schwarzheide, Germany complex.

Licensing Deal Reignites Investor Interest

Loop Industries (NASDAQ:LOOP) shares are surging in pre-market trading, extending gains that trace back to an August 13, 2026 announcement of a License Agreement with ELITe granting a perpetual, exclusive, royalty-bearing right to Loop's proprietary depolymerization technology for producing rDMT, rMEG and specialty polymer products across India and other agreed territories. Alongside the license, Loop signed a Marketing Agreement making itself ELITe's exclusive sales representative, controlling contracts, pricing and quantities for tiered marketing fees, plus a Services Agreement under which Ester Industries provides project management support. Loop's press materials describe the structure as designed to 'align incentives' as ELITe scales recycled-polymer production.

Commercial Momentum Building Around India And Europe

Beyond the licensing deal, Loop has been accumulating incremental commercial validation for its Infinite Loop India joint venture, including a non-binding letter of intent from a major global apparel Brand for up to 15,000 metric tons per year of PET fiber-grade resin, disclosed in its July 14, 2026 fiscal first-quarter report. The company also reported continued engineering progress with Toyo Engineering India, advancement of a roughly $130 million Debt syndication with multilateral development banks, and selection of BASF's Schwarzheide, Germany industrial park as the site for its first European facility, which is entering engineering and permitting phases.

Cash Burn And Dilution Remain Key Risks

Loop's fundamentals remain fragile: for the quarter ended May 31, 2026, Revenue was just $179,000, the net loss was $3.385 million, and cash on hand stood at only $1.06 million against total available Liquidity of $3.6 million and a stockholders' Deficit of $12.0 million. The company still needs roughly $28 million in Equity to fund its India joint venture contribution alongside the pending debt syndication. Notably, LOOP fell 12.87% on July 15, 2026 despite positive commercialization news, illustrating that the market has not always rewarded strategic announcements, making today's rally worth watching for follow-through rather than assuming it holds.

What Investors Should Watch

Loop Industries shares are up about 57% in pre-market trading to $0.9763, building on an August 13 licensing, marketing and services agreement with ELITe and Ester Industries covering Loop's PET depolymerization technology in India, against a backdrop of a still cash-constrained, pre-revenue-at-scale balance sheet. These are the verified facts as reported. Whether the rally sustains may depend on whether Loop can convert its India and Europe project pipeline, and the ELITe licensing structure, into Recurring Revenue before its thin cash position forces further dilutive financing.