Li-Cycle Closes Successful $15M Public Offering for Growth

Li-Cycle Completes $15 Million Public Offering

Li-Cycle Holdings Corp. (NYSE: LICY), a frontrunner in the global lithium-ion battery resource recovery sector, has recently announced the closure of its underwritten public offering. This offering garnered gross proceeds of approximately $15 million, before accounting for various expenses associated with the offering.

Details of the Offering

The public offering was structured into units comprising of both common shares and warrants. Specifically, 5,000,000 units and 10,000,000 pre-funded units were issued. Each unit included one common share, one Series A warrant, and one Series B warrant, enabling investors to purchase underlying common shares at defined prices.

Pricing Structure and Warrant Details

The offering price set for each unit was $1.00, while the pre-funded units were priced at approximately $0.99999. The Series A and Series B warrants come with a strike price of $1.00 per common share. These warrants are immediately exercisable; however, each has different expiration timelines.

Capital Allocation Plans

Li-Cycle envisions utilizing the net proceeds from this offering primarily for working capital allocation and advancing overarching corporate goals. This funding will support the company as it continues to innovate in battery recycling technologies.

Aegis Capital's Role in the Offering

Aegis Capital Corp. served as the sole book-running manager for this public offering, demonstrating a significant commitment to helping Li-Cycle in its objectives. Their expertise was pivotal throughout the process, ensuring a smooth execution of the offering.

Strategic Consent and Waiver Agreement

Prior to closing the offering, Li-Cycle reached a consent and waiver agreement with Glencore Canada Corporation. This agreement was crucial as Glencore is a related party and had certain rights concerning the senior secured convertible note issued by Li-Cycle. The waiver allows Li-Cycle to proceed without default concerns due to the issuance of new warrants.

Benefits of the Agreement

This strategic alignment underscores Li-Cycle’s commitment to maintaining productive relationships with key stakeholders, a crucial aspect for future growth prospects.

Regulatory Compliance and Disclosure

The offering was executed under a previously effective shelf registration statement with the U.S. SEC. This regulatory adherence ensures that Li-Cycle's disclosures are transparent and up to date, offering security to investors.

About Li-Cycle Holdings Corp.

Li-Cycle is at the forefront of creating sustainable battery recycling solutions. Established in 2016, its mission is to develop a closed-loop supply chain for lithium-ion batteries. By utilizing its innovative Spoke & Hub Technologies™, the company aims to recover essential materials like lithium and cobalt from batteries no longer in use, ensuring these materials are reintegrated into the supply chain.

Frequently Asked Questions

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

The offering was primarily intended to raise funds for working capital and to support overall corporate growth strategies.

How many units were issued in the public offering?

Li-Cycle issued a total of 5,000,000 units and 10,000,000 pre-funded units.

Who managed the public offering?

Aegis Capital Corp. acted as the sole book-running manager for the public offering.

What is the significance of the consent and waiver agreement with Glencore?

This agreement allows Li-Cycle to issue new warrants without defaulting on obligations related to the senior secured convertible note.

What is the mission of Li-Cycle Holdings Corp.?

Li-Cycle aims to recover key battery-grade materials to foster a sustainable, closed-loop supply chain for batteries, enhancing energy efficiency and environmental responsibility.

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