Loop Industries (LOOP) Stock Tumbles On Hindenburg Research Report

Loop Industries LOOP Stock News

Loop Industries Inc (NASDAQ: LOOP) is falling like a brick dropped from the Empire State Building. While the company hasn’t issued any news of its own, there’s good reason for the declines. The company seems to be the target of a Hindenberg Research short report, and if the allegations are true, there are likely troubling times ahead.

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LOOP Stock Is Dramatically Declining

In the short report, the authors at Hindenburg Research made several severe allegations, starting with one that suggests that the Loop Industries, a company that claims to have innovated cutting edge technologies, is nothing more than “smoke and mirrors,” going on to explain that the company actually has “no viable technology.”

The report goes on to explain that it spoke to several sources close to the company and reviewed court records before coming to its opinion.

In speaking with former employees, Hindenburg Research found that the comapny has two labs. The first of which is reserved for very young scientist brothers and their father. LOOP is said to have a second lab where rank-and-file employees were unable to replicate breakthroughs that came from the twenty-something scientists.

Hindenburg also alleges that the two young scientists, lead scientists at LOOP who co-invented the company’s recycling process have no post-graduate education in chemistry. Moreover, they seem to have no work experience outside of their work as lead scientists at the company.

In another allegation, Hindenburg Research said that the CEO of the company is known for pressuring employees to lie about the technology produced. Focused on recycling plastic, former employees said that a recovery rate of 100%, as the company claims, is “technically, and industrially impossible.”

Moreover, employees said tha tthe company lied about producing industrial grade purity base chemicals from PET plastics. The report also states that convicts have been hired at the company who have a history of stock manipulation.

Hindenburg goes on to make several more allegations, suggesting that the entire company is built by and employed by fraudsters. As a result, Hindenburg never expects LOOP to generate any meaningful revenue. As a result, the firm sees a 100% downside and suggests that it will quickly burn through its cash on hand. Hindenburg has provided regulators with its findings.

This Is Bad News

The fact that Hindenburg latched onto Loop Industries is rough news for the company and its investors. The allegations made are very serious, suggesting that those who have invested in the stock have thrown their money into a burning trash can.

Ultimately, only time will tell if these allegation have truth to them, but after reading the report, it’s going to be hard to refute. So, the declines in LOOP stock are definitely justified.

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