Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the
“Company”), a leading global lithium-ion battery resource recovery
company, is pleased to announce that an affiliate of Glencore plc
(LON: GLEN) (“Glencore”), a leading producer, recycler, and
marketer of nickel and cobalt for the production of lithium-ion
batteries, has completed its previously announced $75 million
investment in Li-Cycle through the purchase of a senior secured
convertible note (the “Note”).
Ajay Kochhar, Li-Cycle co-founder and CEO, commented: “We are
pleased to close the $75 million investment from Glencore, which
enhances our liquidity position and is a key interim step in our
funding strategy. As we continue our comprehensive review process,
we look forward to expanding our existing long-term, strategic
partnership with Glencore and are excited about the future
opportunities for Li-Cycle. We remain focused on our key priorities
of driving down costs through our cash preservation plan, reviewing
our go-forward strategy for the paused Rochester Hub, and
evaluating additional financing and strategic alternatives. We also
continue to work closely with the U.S. Department of Energy on a
conditional commitment for a loan of up to $375 million.”
Glencore completed its investment by purchasing the Note in the
aggregate principal amount of $75 million. The Note has a five-year
term and is convertible into common shares of the Company (“Common
Shares”) at an initial conversion price of $0.53 per Common Share.
Li-Cycle will be entitled, at its election, to pay interest on the
Note in cash or in-kind (“PIK”). Cash interest payments will be
based on the Secured Overnight Financing Rate (“SOFR”) plus 5.0%
per year, and PIK payments will be based on SOFR plus 6.0% per
year.
Li-Cycle and Glencore have also agreed to amend and restate the
terms of the existing Glencore convertible note issued by Li-Cycle
to an affiliate of Glencore on May 31, 2022, along with the
outstanding PIK notes issued in connection with the existing
Glencore convertible note, (collectively, the “Existing Glencore
Notes”), in two tranches, each of which will include new terms that
come into effect upon the occurrence of future events. The
aggregate amount outstanding under the Existing Glencore Notes is
currently approximately $225 million. For more information, refer
to our press release and Form 8-K dated March 12, 2024.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery
resource recovery company. Established in 2016, and with major
customers and partners around the world, Li-Cycle’s mission is to
recover critical battery-grade materials to create a domestic
closed-loop battery supply chain for a clean energy future. The
Company leverages its innovative, sustainable and patent-protected
Spoke & Hub Technologies™ to recycle all different types of
lithium-ion batteries. At our Spokes, or pre-processing facilities,
we recycle battery manufacturing scrap and end-of-life batteries to
produce black mass, a powder-like substance which contains a number
of valuable metals, including lithium, nickel and cobalt. At our
future Hubs, or post-processing facilities, we plan to process
black mass to produce critical battery-grade materials, including
lithium carbonate, for the lithium-ion battery supply chain. For
more information, visit https://li-cycle.com/.
Forward-Looking Statements
Certain statements contained in this press release may be
considered “forward-looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995, Section 27A
of the U.S. Securities Act of 1933, as amended, Section 21 of the
U.S. Securities Exchange Act of 1934, as amended, and applicable
Canadian securities laws. Forward-looking statements may generally
be identified by the use of words such as “believe”, “may”, “will”,
“continue”, “anticipate”, “intend”, “expect”, “should”, “would”,
“could”, “plan”, “potential”, “future”, “target” or other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters, although not all
forward-looking statements contain such identifying words.
Forward-looking statements in this press release include but are
not limited to statements about: the potential expansion of
Li-Cycle’s existing partnership with Glencore; the future
opportunities for Li-Cycle; the expectations regarding driving down
costs, reviewing the go-forward strategy for the Rochester Hub, and
evaluating additional financing and strategic alternatives; and the
expectations regarding the conditional comment for a loan of up to
$375 million from the U.S. Department of Energy. These statements
are based on various assumptions, whether or not identified in this
communication, including but not limited to assumptions regarding
the timing, scope and cost of Li-Cycle’s projects, including paused
projects; the processing capacity and production of Li-Cycle’s
facilities; Li-Cycle’s expectations regarding near-term significant
workforce reductions and the ability to right-size and right-shape
the organization; Li-Cycle's ability to source feedstock and manage
supply chain risk; Li-Cycle’s ability to increase recycling
capacity and efficiency; Li-Cycle’s ability to obtain financing on
acceptable terms or execute any strategic transactions; Li-Cycle’s
ability to retain and hire key personnel and maintain relationships
with customers, suppliers and other business partners; the success
of the cash preservation plan, the outcome of the review of the
go-forward strategy of the Rochester Hub; Li-Cycle’s ability to
attract new suppliers or expand its supply pipeline from existing
suppliers; general economic conditions; currency exchange and
interest rates; compensation costs; and inflation. There can be no
assurance that such estimates or assumptions will prove to be
correct and, as a result, actual results or events may differ
materially from expectations expressed in or implied by the
forward-looking statements.
These forward-looking statements are provided for the purpose of
assisting readers in understanding certain key elements of
Li-Cycle’s current objectives, goals, targets, strategic
priorities, expectations and plans, and in obtaining a better
understanding of Li-Cycle’s business and anticipated operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes and is not intended to serve as, and
must not be relied on, by any investor as a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability.
Forward-looking statements involve inherent risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the control of Li-Cycle, and are not guarantees of
future performance. Li-Cycle believes that these risks and
uncertainties include, but are not limited to, the following:
Li-Cycle’s inability to economically and efficiently source,
recover and recycle lithium-ion batteries and lithium-ion battery
manufacturing scrap, as well as third party black mass, and to meet
the market demand for an environmentally sound, closed-loop
solution for manufacturing waste and end-of-life lithium-ion
batteries; Li-Cycle’s inability to successfully implement its
global growth strategy, on a timely basis or at all; Li-Cycle’s
inability to manage future global growth effectively; Li-Cycle’s
inability to develop the Rochester Hub as anticipated or at all,
and other future projects including its Spoke network expansion
projects in a timely manner or on budget or that those projects
will not meet expectations with respect to their productivity or
the specifications of their end products; Li-Cycle's history of
losses and expected significant expenses for the foreseeable future
as well as additional funds required to meet Li-Cycle’s liquidity
needs and capital requirements in the future not being available to
Li-Cycle on acceptable terms or at all when it needs them; risk and
uncertainties related to Li-Cycle’s ability to continue as a going
concern; uncertainty related to the success of Li-Cycle’s cash
preservation plan and related past and expected near-term further
significant workforce reductions; Li-Cycle's inability to attract,
train and retain top talent who possess specialized knowledge and
technical skills; Li-Cycle’s failure to oversee and supervise
strategic review of all or any of Li-Cycle’s operations and capital
project and obtain financing and other strategic alternatives;
Li-Cycle’s ability to service its debt and the restrictive nature
of the terms of its debt; Li-Cycle's potential engagement in
strategic transactions, including acquisitions, that could disrupt
its business, cause dilution to its shareholders, reduce its
financial resources, result in incurrence of debt, or prove not to
be successful; one or more of Li-Cycle's current or future
facilities becoming inoperative, capacity constrained or disrupted,
or lacking sufficient feed streams to remain in operation; the
potential impact of the pause in construction of the Rochester Hub
on the authorizations and permits granted to Li-Cycle for the
operation of the Rochester Hub and the Spokes on pause; the risk
that the New York state and municipal authorities determine that
the permits granted to Li-Cycle for the production of metal
sulphates at the Rochester Hub will be impacted by the change to
MHP and the reduction in scope for the project; Li-Cycle's failure
to materially increase recycling capacity and efficiency; Li-Cycle
expects to continue to incur significant expenses and may not
achieve or sustain profitability; problems with the handling of
lithium-ion battery cells that result in less usage of lithium-ion
batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to
maintain and increase feedstock supply commitments as well as
secure new customers and off-take agreements; a decline in the
adoption rate of EVs, or a decline in the support by governments
for “green” energy technologies; decreases in benchmark prices for
the metals contained in Li-Cycle’s products; changes in the volume
or composition of feedstock materials processed at Li-Cycle’s
facilities; the development of an alternative chemical make-up of
lithium-ion batteries or battery alternatives; Li-Cycle’s expected
revenues for the Rochester Hub are expected to be derived
significantly from a limited number of customers; uncertainty
regarding the sublease agreement with Pike Conductor Dev 1, LLC
related to the construction, financing and leasing of a warehouse
and administrative building for the Rochester Hub; Li-Cycle’s
insurance may not cover all liabilities and damages; Li-Cycle’s
heavy reliance on the experience and expertise of its management;
Li-Cycle’s reliance on third-party consultants for its regulatory
compliance; Li-Cycle’s inability to complete its recycling
processes as quickly as customers may require; Li-Cycle’s inability
to compete successfully; increases in income tax rates, changes in
income tax laws or disagreements with tax authorities; significant
variance in Li-Cycle’s operating and financial results from period
to period due to fluctuations in its operating costs and other
factors; fluctuations in foreign currency exchange rates which
could result in declines in reported sales and net earnings;
unfavorable economic conditions, such as consequences of the global
COVID-19 pandemic; natural disasters, unusually adverse weather,
epidemic or pandemic outbreaks, cyber incidents, boycotts and
geo-political events; failure to protect or enforce Li-Cycle’s
intellectual property; Li-Cycle may be subject to intellectual
property rights claims by third parties; Li-Cycle may be subject to
cybersecurity attacks, including, but not limited to, ransomware;
Li-Cycle’s failure to effectively remediate the material weaknesses
in its internal control over financial reporting that it has
identified or its failure to develop and maintain a proper and
effective internal control over financial reporting; the potential
for Li-Cycle’s directors and officers who hold Company common
shares to have interests that may differ from, or be in conflict
with, the interests of other shareholders; and risks related to
adoption of Li-Cycle’s shareholder rights plan and amendment to the
shareholder rights plan and the volatility of the price of
Li-Cycle’s common shares. These and other risks and uncertainties
related to Li-Cycle’s business are described in greater detail in
the section entitled "Item 1A. Risk Factors" and “Item 7.
Management’s Discussion and Analysis of Financial Condition and
Results of Operation—Key Factors Affecting Li-Cycle’s Performance”
in its Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission and the Ontario Securities Commission in
Canada. Because of these risks, uncertainties and assumptions,
readers should not place undue reliance on these forward-looking
statements. Actual results could differ materially from those
contained in any forward-looking statement.
Li-Cycle assumes no obligation to update or revise any
forward-looking statements, except as required by applicable laws.
These forward-looking statements should not be relied upon as
representing Li-Cycle’s assessments as of any date subsequent to
the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240325558107/en/
Investor Relations Nahla A. Azmy
Sheldon D’souza investors@li-cycle.com Media Louie Diaz media@li-cycle.com
Li Cycle (NYSE:LICY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Li Cycle (NYSE:LICY)
Historical Stock Chart
From Sep 2023 to Sep 2024