Loop Industries, Inc. (NASDAQ:LOOP) shares are trading lower after hours Tuesday after the company raised substantial doubt about its ability to continue as a going concern and said it will need additional financing.

LOOP shares fell 8.5% in after-hours trading to $0.92 after closing the regular session at $1.00.

Loop Industries is a recycling technology company that turns PET plastic waste and polyester textiles into recycled materials for packaging, clothing and other products. The company is working to commercialize its technology through projects in India and Europe.

Going Concern Warning

In its annual report released Tuesday, Loop Industries stated that management determined its existing cash resources, together with amounts available under its undrawn credit facility, will not be sufficient to fund ongoing operations, obligations and commitments for at least the next 12 months.

The company said these conditions raise substantial doubt about its ability to continue as a going concern and noted that future operations will depend on securing additional financing through a combination of debt, equity, joint ventures and ...