Item 1.01 Entry into a Material Definitive Agreement

On January 11, 2018, Loop Industries, Inc. (the “ Company ”) sold to accredited investors, pursuant to common stock subscription agreements entered into by and between the Company and the purchaser signatories thereto (the “ Subscription Agreements ”) in a private placement offering (the “ Private Placement ”), an aggregate of 612,667 shares of its common stock, par value $0.0001 per share (the “ Shares ”), for an aggregate purchase price of approximately $7.4 million. The Company expects to use the net proceeds of the Private Placement for general working capital.

Pursuant to the Subscription Agreements, the Company granted piggyback registration rights to the investors and agreed to use reasonable best efforts to file a resale registration statement registering the Shares within 60 days of the closing of the Private Placement. The Company also agreed to issue 104,167 warrants to purchase up to a number of shares of the Company’s common stock equal to 25% of the Shares purchased in the Private Placement (the “ Warrants ”) on the 60 ^th day following the closing of the Private Placement in the event the Company has not yet filed the resale registration statement or earlier if the investors waive the registration rights granted pursuant to the Subscription Agreements.

Additionally, for a period of 90 days following the closing of the Private Placement, in the event the Company issues shares of common stock or any securities of the Company that would entitle the holder thereof to acquire common stock for a consideration per share less than $12.00 per share (subject to certain customary exceptions, including but not limited to issuances pursuant to existing equity incentive plans and strategic partnerships or relationships), the investors would be entitled to additional shares of common stock equal to the quotient of the aggregate price paid by the investor for the total number of shares purchased divided by the price per share that was issued for consideration per share less than $12.00 per share less the number of shares purchased by such investor in the Private Placement.

For the sale of the Shares, we relied on Section 4(a)(2) of the Securities Act of 1933, as amended (the “ Act ”) or the private offering safe harbor provision of Rule 506 of Regulation D promulgated thereunder based on the following factors: (i) the number of offerees or purchasers, as applicable, (ii) the absence of general solicitation, (iii) representations obtained from the purchasers relative to their accreditation and/or sophistication and/or their relationship to the company (directors and officers), (iv) the provision of appropriate disclosure, and (v) the placement of restrictive legends on the certificates reflecting the securities coupled with investment representations obtained from the purchasers.

A copy of the form of Subscription Agreement is attached as Exhibit 10.1 and a copy of the form of Warrant is attached as Exhibit 4.1 to this report and is incorporated herein by reference.