Mr. Paul Cataford reports

LOOP ENERGY REPORTS FOURTH QUARTER & YEAR END 2023 RESULTS

Loop Energy Inc. has released consolidated financial results for the fourth quarter and full year ended Dec. 31, 2023. All amounts have been prepared in accordance with international financial reporting standards.

Full-year 2023 financial highlights:

• Full-year 2023 revenues of $2.1-million (2022: $3.3-million);
• Full-year 2023 operating expenses of $23.6-million (2022: $27.9-million);
• Full-year 2023 net losses of $34.2-million (2022: net losses of $37.5-million);
• Full-year 2023 capital expenditures of $4.6-million (2022: $15.0-million);
• Cash and cash equivalents of $2.9-million as of Dec. 31, 2023 (2022: $24.5-million).

Outlook:

• On Feb. 12, 2024, the company announced that the company and H2P Portable Power Corp. have entered into an amalgamation agreement dated Feb. 9, 2024, in respect of a three-cornered amalgamation pursuant to which H2P will amalgamate with a subsidiary of Loop, Loop will acquire all of the issued and outstanding common shares of H2P, and H2P shareholders will receive common shares of Loop. Benefits to the combined entity outlined in the press release include the following:
  • A strong incoming team;
  • Operational efficiencies;
  • A concurrent $15-million financing (the H2P subscription receipt financing).
• Subsequent to above announcement, H2P provided the company with a $500,000 prepayment deposit associated with a purchase order and a further $1.5-million in the form of an unsecured bridge loan. Should the amalgamation not be completed, the bridge loan becomes due and payable the fifth day following the termination of the amalgamation agreement.
• On Feb. 27, 2024, the company announced an annual and special meeting to be held on April 26, 2024, at which, among other things, shareholders will vote on the amalgamation.
• On March 15, 2024, the company announced that H2P had launched its $15-million subscription receipt financing.
• Completion of the amalgamation and the subscription receipt financing are subject to a number of approvals and risks, including the approval of the company's shareholders. For full details on the risks and uncertainties affecting the company, please refer to the company's annual information form (see section entitled "Risk factors") for the year ended Dec. 31, 2023, a copy of which is available on SEDAR+.

About Loop Energy Inc.

Loop Energy is a leading designer and manufacturer of hydrogen fuel stacks targeted for the electrification of commercial vehicles such as buses and trucks, as well as stationary power applications. Loop Energy's products feature the company's proprietary eFlow technology in the fuel cell stack's bipolar plates. eFlow technology enables customers to achieve superior performance and higher fuel efficiency when using Loop Energy's fuel cell stacks, which lowers operating cost for end-users while enabling original equipment manufacturers to achieve lower capital cost and faster time to market. Loop Energy works closely with its partners to enable the production of hydrogen electric solutions.

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