Li-Cycle Sparks Controversy with Bold Plans for Proposed Underwritten Public Offering specializing in lithium-ion battery resource recovery, has today revealed that it has officially commenced an underwritten public offering in the United States (referred to as the “Offering”). The Offering aims to offer and sell units consisting of two primary components: (i) common shares (or pre-funded warrants in place of these shares), and (ii) warrants that allow the purchase of additional common shares. As part of the offering, the Company has entered into an agreement that would allow Aegis Capital Corp. a 45-day option to purchase additional common shares and/or warrants, representing up to 15% of the total common shares and up to 15% of the total warrants sold in the Offering, solely for the purpose of covering over-allotments, should any occur.
The net proceeds garnered from this public offering are intended to be used by Li-Cycle for working capital and other general corporate purposes. This move reflects the Company’s ongoing efforts to expand its operations and drive its mission of facilitating a cleaner energy future through the recovery and recycling of critical materials from lithium-ion batteries.
Li-Cycle’s common shares are currently listed on the New York Stock Exchange (NYSE) under the ticker symbol “LICY”. However, it is important to note that the offered warrants and any pre-funded warrants will not be listed on any exchange. The success of the Offering is contingent upon various market factors and other conditions, and as such, there is no guarantee that the Offering will be completed, nor any assurance regarding its size or specific terms.
Aegis Capital Corp. is serving as the sole book-running manager for the Offering on a firm commitment basis, while Freshfields US LLP is providing legal counsel to Li-Cycle. Sichenzia Ross Ference Carmel LLP is acting as legal counsel to Aegis Capital Corp.
This public offering is being conducted pursuant to an effective shelf registration statement on Form S-3 (No. 333-278010), which was previously filed with the U.S. Securities and Exchange Commission (SEC) and was declared effective on March 29, 2024. As part of this process, a preliminary prospectus supplement, accompanied by the main prospectus detailing the terms of the Offering, will be filed with the SEC and made available on the SEC’s official website at www.sec.gov.
Interested parties can obtain electronic copies of the preliminary prospectus supplement and the accompanying prospectus when they are available by contacting Aegis Capital Corp. directly at their New York office, via email at [email protected], or by phone at +1 (212) 813-1010. Prior to making any investment in the Offering, interested investors should carefully review the registration statement, the preliminary prospectus supplement, the accompanying prospectus, and all other relevant documents that have been filed with the SEC. These documents provide in-depth information about Li-Cycle and the details of the Offering.
It is important to clarify that this press release does not constitute an offer to sell or a solicitation for the purchase of any securities. Additionally, no sales of these securities will be made in any state or jurisdiction where such an offer, solicitation, or sale would be illegal without proper registration or qualification under the securities laws of the relevant jurisdiction.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is a prominent global leader in lithium-ion battery resource recovery. Founded in 2016, Li-Cycle has built a robust network of key customers and strategic partners around the world. The Company’s mission is to recover critical, battery-grade materials, ultimately aiming to establish a sustainable, closed-loop battery supply chain that will support a clean energy future.
Li-Cycle utilizes its innovative, sustainable, and patent-protected Spoke & Hub Technologies™ to recycle various types of lithium-ion batteries. At their Spokes (pre-processing facilities), the Company recycles battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance that contains valuable metals such as lithium, nickel, and cobalt. Li-Cycle’s future Hubs (post-processing facilities) will be responsible for processing the black mass into critical battery-grade materials, including lithium carbonate, which is essential for the lithium-ion battery supply chain. For more detailed information, you can visit the Company’s website at https://li-cycle.com/.
Forward-Looking Statements
This press release contains forward-looking statements, which are based on assumptions and expectations about future events that are inherently uncertain. These statements may include the use of words such as “believe,” “may,” “will,” “continue,” “expect,” “should,” “plan,” “potential,” “future,” or other similar expressions that indicate future outcomes.
The forward-looking statements in this release include, but are not limited to, expectations regarding the completion and terms of the Offering and how the net proceeds from the Offering will be utilized by the Company. These statements are based on various assumptions about Li-Cycle’s operations, including the successful execution of its business strategy and its ability to secure financing, maintain customer relationships, and expand its recycling capacity.
However, there are risks and uncertainties that could cause actual outcomes to differ materially from those anticipated. These include the ability of the Company to access funds under its loan facility with the U.S. Department of Energy (DOE Loan Facility), the ability to meet the conditions for further project funding, and the ability to complete and meet the productivity targets of its Spoke optimization and expansion plans. Additionally, challenges may arise in securing feedstock, obtaining financing on favorable terms, and executing strategic plans for the Company’s Rochester Hub and other projects.
Li-Cycle also faces potential risks related to its ability to continue as a going concern, insurance limitations, dependence on a limited number of commercial partners, and risks of legal or regulatory proceedings that may adversely affect its financial performance.
These forward-looking statements are not guarantees and are subject to change. Li-Cycle assumes no obligation to update or revise the statements except as required by law. As always, potential investors are encouraged to carefully consider these risks and uncertainties before making any investment decisions.
For further details regarding risks and uncertainties, readers should refer to the Company’s filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which provide comprehensive insight into the key factors affecting Li-Cycle’s performance.
In summary, this offering is part of Li-Cycle’s ongoing commitment to securing the necessary capital to drive the growth of its innovative business model. The Company continues to seek ways to transform the lithium-ion battery recycling industry and further its goal of a sustainable and clean energy future.
