On January 24, 2018, the Company obtained a credit facility, consisting of a $39 thousand credit card facility and a $1.1 million 20-year term instalment loan (the “Loan”). The Loan bears interest at the bank’s Canadian prime rate plus 1.5%. By agreement, the Loan is repayable in monthly payments of CDN $5,833 plus interest, until January 2021, at which time it will have to be renewed. It includes an option allowing for the prepayment of the Loan without penalty. Interest paid amounted to $4,505 during the year ended February 28, 2018.

The credit facility is secured by a first ranking hypothec of Loop Canada Inc.’s bank accounts, receivables, inventory, incorporeal rights and property, plant and equipment. In addition, Loop Industries Inc. has guaranteed the credit facility and has provided a postponement of intercompany loan amounts. The terms of the credit facility require the Company to comply with certain financial covenants. As at February 28, 2018, the Company was in compliance with its financial covenants.

Principal repayments due on the Loan over the next five years are as follows: