The Company, through its wholly-owned subsidiary Loop Innovations, LLC, a Delaware limited liability company, entered into a Joint Venture Agreement (the “Agreement”) with Indorama Holdings LP, USA, an indirect subsidiary of Indorama Ventures Public Company Limited, on September 24, 2018 to form a 50:50 joint venture limited liability company by the name of Indorama Loop Technologies, LLC (“ILT”).

The intention is for ILT to manufacture polyester resin for beverage and consumer packaged goods companies and will, using the Company’s technology, manufacture Loop branded resin. Pursuant to the Agreement, the Company has also committed to provide an initial capital contribution to ILT of $0.5 million by January 22, 2019. There was no activity in ILT from the date of inception of September 24, 2018 to November 30, 2018, with the exception of the Company’s contribution of an exclusive worldwide royalty-free license to use its proprietary technology. The Company has equity-accounted for its investment in ILT for the quarter ended November 30, 2018, which given the limited activities, had no impact on the consolidated financial statements.

In October 2018, the Company entered into a multi-year agreement with PepsiCo that will enable it to purchase production capacity from the Company’s joint venture facility with IVL in the United States and incorporate Loop™ PET resin, into its product packaging by early 2020.