Li-Cycle Initiates an Underwritten Public Offering for Growth

Li-Cycle Announces Proposed Underwritten Public Offering

Li-Cycle Holdings Corp. (NYSE: LICY), a prominent player in the lithium-ion battery resource recovery sector, is excited to share that it has begun an underwritten public offering in the United States. This strategic move aims to enhance the company's operations and expand its capacity to recover critical battery-grade materials.

Details of the Offering

As part of the offering, Li-Cycle plans to offer units that include common shares or pre-funded warrants, alongside warrants to acquire common shares. This initiative not only reflects the company's commitment to its mission but also aims to tap into the growing demand for lithium-ion battery recycling.

Additional Options for Financial Flexibility

Furthermore, Li-Cycle anticipates providing Aegis Capital Corp. with a 45-day option to purchase additional shares and/or warrants, representing up to 15% of the total common shares and warrants sold in this offering. This measure is designed to reinforce the offering's robustness and ensure financial strength.

Intended Use of Proceeds

The proceeds derived from this offering are slated for general corporate purposes and working capital. This will empower Li-Cycle to further its operations, including enhancing its innovative Spoke & Hub Technologies™, which play a critical role in recycling various lithium-ion batteries.

Market Conditions and Potential

While the offering presents significant opportunities, it is subject to fluctuations in market conditions. Thus, there's no assurance regarding its completion timeline or the final terms of the offering. Li-Cycle remains poised to adapt and respond to any market shifts to ensure the initiative’s success.

Role of Aegis Capital Corp.

Aegis Capital Corp. stands at the forefront as the sole book-running manager for this offering on a firm commitment basis. Their expertise is invaluable in navigating the complexities of financial markets and ensuring the successful execution of this offering.

Company Background

Li-Cycle has carved a niche in the lithium-ion battery recycling industry since its establishment in 2016. The company is on a mission to create a closed-loop battery supply chain that contributes to a cleaner energy future. By utilizing its patented technologies, Li-Cycle effectively recycles end-of-life batteries and manufacturing scrap, producing black mass, which is rich in valuable metals like lithium, nickel, and cobalt.

Future Prospects and Expansion Plans

Looking ahead, Li-Cycle plans to transform black mass into essential battery-grade materials at its future processing facilities, known as Hubs. This expansion into processing capabilities is crucial for supporting the ever-growing demand for sustainable battery materials and bolstering supply chain resilience.

Investment Considerations

Potential investors are encouraged to review relevant documents filed with the U.S. Securities and Exchange Commission, including a preliminary prospectus supplement and accompanying prospectus. These documents will provide further insights into Li-Cycle’s operations, risks, and investment potential.

Frequently Asked Questions

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

Li-Cycle's public offering is aimed at raising funds for working capital and general corporate purposes, supporting its innovative recycling efforts.

What types of securities are being offered?

The offering includes common shares, pre-funded warrants in lieu of shares, and warrants to purchase common shares.

Who is managing the offering?

Aegis Capital Corp. is the sole book-running manager for the offering.

What benefits does Li-Cycle's technology provide?

Li-Cycle’s Spoke & Hub Technologies™ enable the efficient recycling of various lithium-ion batteries, contributing to sustainability and resource recovery.

Where can I find more information about the offering?

Investors can find more information in documents filed with the SEC, which will provide comprehensive details about the offering and Li-Cycle’s business operations.

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