Why is LOOP stock 10% Up pre market?

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  • Loop Industries (NASDAQ: LOOP) and SK Global Chemical have agreed to take a 10% stake in the company, the largest outside investment after CEO Daniel Solomita., to help commercialize its plastic recycling technology in Asia.
  • The partnership aims to help commercialize its plastic recycling technology in Asia. Loop and SKGC are also planning a joint venture with exclusivity to build sustainable PET plastic and polyester fiber manufacturing facilities throughout Asia, according to a statement.
  • The first facility will start building in South Korea in the first quarter of 2022. The end result will be four facilities in Asia by 2030.
  • Under the transaction, SKGC will purchase 4.71M new treasury common shares of Loop at a price of $12 per share, for a total of $56.5M. Loop intends to use these proceeds toward the funding of its planned Infinite Loop manufacturing facility at its recently acquired site in Bécancour, Québec.
  • Note: LOOP has a short interest of 14.5% of equity float.

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