Li-Cycle Gains Approval for Trading on the OTCQX® Best Market
Li-Cycle Holdings Corp. , a leading global lithium-ion battery resource recovery company, has officially announced that its common shares have been approved for trading on the OTCQX® Best Market. The company anticipates that its shares will commence trading under the ticker symbol “LICYF” on February 27, 2025, when they become eligible for quotation. This move marks an important step for the company as it seeks to optimize its market presence while maintaining efficient access to U.S. capital markets.
Ajay Kochhar, Li-Cycle‘s President and CEO, commented on the transition, stating, “Moving to OTCQX is expected to reduce our costs while continuing to provide us efficient access to U.S. capital markets. We remain focused on providing value for all stakeholders and advancing our key priorities, especially securing a complete funding package for our Rochester Hub project and satisfying funding conditions for the first advance under our U.S. Department of Energy (“DOE”) loan facility. With our finalized DOE loan facility, top-tier partnerships across the global critical minerals and lithium-ion battery supply chains, and patented Spoke & Hub Technologies™, Li-Cycle plays an important role in strengthening the U.S. energy industry due to our ability to produce critical minerals domestically.”
Implications of the Transition to OTCQX
The transition to OTCQX will not impact Li-Cycle’s daily business operations or its reporting obligations under the U.S. Securities and Exchange Commission (“SEC”) and other relevant securities laws. The OTCQX Best Market is the highest tier of the OTC Markets Group and serves as a trading platform for approximately 12,000 U.S. and international securities. Companies listed on the OTCQX must meet stringent financial standards, adhere to best-practice corporate governance, and demonstrate full compliance with applicable securities regulations.
For Li-Cycle, this move represents a strategic decision to lower costs and simplify the complexity of being publicly traded while maintaining a transparent trading environment for investors. Companies on the OTCQX market benefit from reduced regulatory requirements compared to traditional stock exchanges, making it an attractive alternative for businesses seeking to continue trading efficiently.
NYSE Delisting and Regulatory Considerations
Li-Cycle’s transition to OTCQX follows a recent decision by the New York Stock Exchange (NYSE) to suspend trading of the company’s common shares and initiate delisting proceedings. The company received written notice from the NYSE confirming the immediate suspension of trading and outlining the steps for delisting from the exchange.
The NYSE’s decision stems from newly implemented amendments to Section 802.01C of its Listed Company Manual, which introduced stricter compliance requirements. Specifically, Li-Cycle was found to be non-compliant due to its average closing share price remaining below $1.00 over a consecutive 30-trading-day period. Additionally, the company had previously undertaken a reverse stock split within the last year, rendering it ineligible for continued NYSE listing under the revised rules.
Despite the delisting, Li-Cycle has confirmed that it will not appeal the NYSE’s decision. Instead, the company remains committed to ensuring uninterrupted trading of its common shares by transitioning to the OTCQX platform and seeking additional listing opportunities that align with its strategic objectives.
Future Listing Plans and Convertible Debt Considerations
Beyond trading on the OTCQX, Li-Cycle has announced its intention to pursue listing on another eligible market, in accordance with the terms set forth in its convertible debt agreements. The company has successfully secured waivers from its key convertible debt holders—Glencore Canada Corporation and Wood River Capital, LLC—to facilitate the move to OTCQX. These waivers, which extend through April 30, 2025, provide Li-Cycle with the flexibility to explore further listing options without jeopardizing its existing financial arrangements.
Convertible debt holders play a crucial role in the company’s financial strategy, and securing their approval for this transition underscores Li-Cycle’s commitment to maintaining strong stakeholder relationships. Additional details about these waivers, along with related documentation, will be disclosed in a forthcoming Current Report on Form 8-K, which the company will file with the SEC.
Li-Cycle’s Commitment to the U.S. Energy Industry
Li-Cycle continues to position itself as a pivotal player in the U.S. energy sector, particularly in the realm of lithium-ion battery recycling and critical mineral recovery. The company’s Spoke & Hub Technologies™ provide a sustainable solution for processing end-of-life batteries and manufacturing scrap, transforming them into valuable raw materials for new battery production.
A key component of Li-Cycle’s growth strategy is the development of its Rochester Hub project, which is expected to serve as a major facility for producing battery-grade materials from recycled sources. The company has been working closely with the U.S. Department of Energy to finalize the terms of a significant loan facility designed to support the project’s completion. By securing the necessary funding and satisfying key financing conditions, Li-Cycle aims to accelerate the establishment of a domestic supply chain for lithium-ion battery materials, reducing reliance on foreign sources and enhancing U.S. energy security.
