Li-Cycle Announces $15 Million Public Offering Insights

Li-Cycle Announces $15 Million Underwritten Public Offering

Li-Cycle Holdings Corp. (NYSE: LICY), a recognized leader in lithium-ion battery resource recovery, has unveiled details about its recent public offering. This strategically planned offering is projected to raise approximately $15 million for the company, providing essential funding to support its ongoing and future initiatives within the battery recycling sector.

Details of the Offering

The exciting journey of this public offering centers around a total of 15,000,000 units, each comprising a common share along with a series of warrants designed to enhance the investment opportunity. Investors can expect each Unit (or a Pre-Funded Unit) to include one share of common stock, alongside one Series A Warrant and one Series B Warrant, each granting the right to purchase additional shares at an exercise price of $1.00.

Warrant Structure and Offering Price

Investors should take note that the exercise of the Series A Warrants comes with an eight-month expiration period, while the Series B Warrants extend over five years. The public offering price per Unit is set at $1.00, with the Pre-Funded Units slightly differing due to a minimal exercise fee. The unique structure of these financial instruments reflects Li-Cycle's commitment to not just growth, but to sustaining investor interest through flexibility and accessible pricing.

Usage of Proceeds

Li-Cycle has outlined that the net proceeds from this offering will primarily fuel working capital and general corporate purposes, affirming the company’s commitment toward innovation and growth in the battery recycling space. The demand for sustainable battery solutions is escalating rapidly, and Li-Cycle aims to position itself as a pivotal player in this expanding market.

Role of Aegis Capital Corp.

Handling the intricacies of this offering is Aegis Capital Corp., which is managing the deal on a firm commitment basis. This partnership is vital, ensuring that Li-Cycle secures the necessary funding while adhering to regulatory requirements and fostering industry relationships.

Registration and Compliance

This offering is conducted under an effective shelf registration statement on Form S-3, ensuring compliance with established regulations. The transparency and accessibility of offering terms are crucial not only for legal adherence but also for building investor confidence.

About Li-Cycle Holdings Corp.

Founded in 2016, Li-Cycle (NYSE: LICY) is at the forefront of the lithium-ion battery recycling landscape. Through its patented Spoke & Hub Technologies™, the company processes a variety of lithium-ion batteries to create a sustainable closed-loop supply chain. This innovative approach not only recovers critical battery-grade materials like lithium, nickel, and cobalt but transforms waste into valuable resources for the future of energy.

Looking Ahead

The future for Li-Cycle appears promising as it continues to leverage cutting-edge technologies and strategic partnerships to drive growth. By focusing on sustainable solutions for battery recycling, the company is aligning itself with the increasing global demand for eco-friendly energy solutions.

Frequently Asked Questions

What is the main purpose of Li-Cycle's recent public offering?

The primary goal of the offering is to raise funds for working capital and general corporate purposes, which will support Li-Cycle's ongoing growth and innovation in battery recycling.

How does the warrant structure work in this offering?

Each unit includes warrants that allow investors to purchase additional Common Shares, with Series A Warrants expiring in eight months and Series B Warrants expiring in five years.

Who is managing this public offering?

Aegis Capital Corp. is the sole book-running manager overseeing the offering, ensuring it meets regulatory requirements and facilitates investor participation.

What technologies does Li-Cycle use for battery recycling?

Li-Cycle employs its patented Spoke & Hub Technologies™ to effectively recycle various lithium-ion batteries and recover valuable materials for the supply chain.

What does the future hold for Li-Cycle?

Li-Cycle is well-positioned to grow in the lithium-ion battery recycling market, focusing on sustainable practices and innovative technologies to meet rising demand.

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