Why Loop Industries Crashed Almost 40% Today
Shares of Loop Industries (NASDAQ: LOOP) tanked as much as 39% this morning, and remain lower by 36% as of 11 a.m. EDT. The plastic recycling technology company was the subject of a new report by short-seller Hindenburg Research.
Hindenburg was recently in the news after it put out a report last month calling electric vehicle start-up Nikola an “intricate fraud.”
Today’s report on Loop Industries claims that the company “is smoke and mirrors with no viable technology.” Loop claims that with its “revolutionary technology all waste PET plastic can be up-cycled.” PET, or polyethylene terephthalate, is commonly used for packaging foods and beverages.