Li-Cycle Announces Launch of Proposed Underwritten Public Offering
Li-Cycle Holdings (NYSE: LICY) has announced the launch of an underwritten public offering in the United States. The offering consists of units comprising common shares (or pre-funded warrants) and warrants to purchase common shares. Aegis Capital Corp will serve as the sole book-running manager and will receive a 45-day option to purchase up to 15% additional common shares and warrants to cover over-allotments.
The company plans to use the net proceeds for working capital and general corporate purposes. While the common shares trade on NYSE under 'LICY', the offered warrants and pre-funded warrants will not be listed on any exchange. The offering is subject to market conditions, with no guarantee of completion or final terms.
Li-Cycle Holdings (NYSE: LICY) ha annunciato il lancio di un'offerta pubblica garantita negli Stati Uniti. L'offerta consiste in unit脿 composte da azioni ordinarie (o warrant prefinanziati) e warrant per l'acquisto di azioni ordinarie. Aegis Capital Corp agir脿 come unico gestore dell'offerta e ricever脿 un'opzione di 45 giorni per acquistare fino al 15% di azioni ordinarie e warrant aggiuntivi per coprire gli over-allotments.
L'azienda prevede di utilizzare i proventi netti per capitale circolante e spese aziendali generali. Sebbene le azioni ordinarie siano negoziate in borsa NYSE sotto il simbolo 'LICY', i warrant offerti e i warrant prefinanziati non saranno quotati su alcun mercato. L'offerta 猫 soggetta alle condizioni di mercato, senza alcuna garanzia di conclusione o termini definitivi.
Li-Cycle Holdings (NYSE: LICY) ha anunciado el lanzamiento de una oferta p煤blica suscrita en los Estados Unidos. La oferta consiste en unidades que comprenden acciones comunes (o warrants prefinanciados) y warrants para comprar acciones comunes. Aegis Capital Corp actuar谩 como el 煤nico gerente de libros y recibir谩 una opci贸n de 45 d铆as para comprar hasta un 15% de acciones comunes adicionales y warrants para cubrir sobreasignaciones.
La empresa planea utilizar los ingresos netos para capital de trabajo y prop贸sitos corporativos generales. Aunque las acciones comunes se negocian en la NYSE bajo el s铆mbolo 'LICY', los warrants ofrecidos y los warrants prefinanciados no se listar谩n en ning煤n intercambio. La oferta est谩 sujeta a las condiciones del mercado, sin garant铆a de finalizaci贸n o t茅rminos definitivos.
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Li-Cycle Holdings (NYSE: LICY) a annonc茅 le lancement d'une offre publique souscrite aux 脡tats-Unis. L'offre se compose d'unit茅s comprenant des actions ordinaires (ou warrants pr茅financ茅s) et des warrants pour acheter des actions ordinaires. Aegis Capital Corp agira en tant que seul responsable du livre et recevra une option de 45 jours pour acheter jusqu'脿 15 % d'actions ordinaires suppl茅mentaires et des warrants pour couvrir les allocations suppl茅mentaires.
L'entreprise pr茅voit d'utiliser le produit net pour le fonds de roulement et les usages g茅n茅raux de l'entreprise. Bien que les actions ordinaires soient n茅goci茅es sur la NYSE sous le symbole 'LICY', les warrants offerts et les warrants pr茅financ茅s ne seront pas cot茅s sur aucune bourse. L'offre est soumise aux conditions du march茅, sans garantie de r茅alisation ou de termes finaux.
Li-Cycle Holdings (NYSE: LICY) hat den Start eines unterzeichneten 枚ffentlichen Angebots in den Vereinigten Staaten bekannt gegeben. Das Angebot besteht aus Einheiten, die aus Stammaktien (oder vorab finanzierten Warrants) und Warrants zum Kauf von Stammaktien bestehen. Aegis Capital Corp wird als alleiniger Buchf眉hrungsleiter fungieren und erh盲lt eine 45-t盲gige Option, um bis zu 15% zus盲tzliche Stammaktien und Warrants zur Deckung von 脺berzusagen zu erwerben.
Das Unternehmen plant, die Nettoerl枚se f眉r Betriebs- und allgemeine Unternehmenszwecke zu verwenden. W盲hrend die Stammaktien unter dem Symbol 'LICY' an der NYSE gehandelt werden, werden die angebotenen Warrants und vorab finanzierten Warrants nicht an irgendeiner B枚rse notiert. Das Angebot unterliegt den Marktbedingungen, ohne Garantie f眉r Abschluss oder endg眉ltige Bedingungen.
- Potential strengthening of working capital position
- Flexible funding structure with both shares and warrants
- Potential dilution for existing shareholders
- Warrants will not be listed on any exchange, reducing their liquidity
- Uncertainty regarding the size and terms of the offering
Insights
This equity offering represents a critical financing event for Li-Cycle, carrying significant implications for existing shareholders. The structure combining common shares with warrants suggests a dilutive impact on current stockholders, while the pre-funded warrants option indicates flexibility in the offering's structure to accommodate different investor preferences.
The firm commitment underwriting by Aegis Capital reduces execution risk, but the absence of pricing details and size raises concerns about the potential dilution magnitude. The timing of this capital raise, with Li-Cycle's market cap at approximately
The shelf registration's recent effectiveness (March 2024) suggests this offering was planned as part of a broader capital strategy. The over-allotment option of
The announcement signals concerning liquidity pressures at Li-Cycle. Pursuing a public offering with both common shares and warrants, typically viewed as a less favorable financing structure, indicates alternatives for capital raising. The working capital designation for proceeds use, rather than growth initiatives, suggests defensive financial positioning.
Key risk factors include:
- Potential significant dilution to existing shareholders
- Warrant overhang potentially pressuring future stock performance
- Timing coinciding with a notably low market capitalization
In addition, the Company expects to grant Aegis Capital Corp. a 45-day option to purchase additional common shares and/or warrants representing up to
The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.
The Company鈥檚 common shares trade on the NYSE under the symbol 鈥淟ICY鈥�. The offered warrants and pre-funded warrants, if any, will not be listed on any exchange. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.
Aegis Capital Corp. is acting as the sole book-running manager for the Offering on a firm commitment basis. Freshfields US LLP is acting as counsel to the Company. Sichenzia Ross Ference Carmel LLP is acting as counsel to Aegis Capital Corp.
The Offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333-278010) previously filed with the
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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鈥檚 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鈩� 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 .
Forward-Looking Statements
Certain statements contained in this press release may be considered 鈥渇orward-looking statements鈥� within the meaning of the
These statements are based on various assumptions, whether or not identified in this press release, including but not limited to assumptions regarding Li-Cycle鈥檚 ability to satisfy the drawdown conditions and access funding under a loan facility with the
These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle鈥檚 current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle鈥檚 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鈥檚 inability to fund the anticipated costs of, and realize the anticipated benefits from, its Spoke optimization plan; Li-Cycle鈥檚 inability to satisfy the drawdown conditions and access funding under the DOE Loan Facility; Li-Cycle鈥檚 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; risk and uncertainties related to Li-Cycle鈥檚 ability to continue as a going concern; Li-Cycle鈥檚 insurance may not cover all liabilities and damages; Li-Cycle鈥檚 reliance on a limited number of commercial partners to generate revenue; Li-Cycle鈥檚 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; and risks of litigation or regulatory proceedings that could materially and adversely impact Li-Cycle鈥檚 financial results. These and other risks and uncertainties related to Li-Cycle鈥檚 business are described in greater detail in the sections titled 鈥淚tem 1A. Risk Factors鈥� and 鈥淚tem 7. Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operation鈥擪ey Factors Affecting Li-Cycle鈥檚 Performance鈥� in its Annual Report on Form 10-K and the sections titled 鈥淧art II. Other Information鈥擨tem 1A. Risk Factors鈥� and 鈥淧art I. Financial Information鈥擨tem 2. Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operation鈥擪ey Factors Affecting Li-Cycle鈥檚 Performance鈥� in its Quarterly Reports on Form 10-Q, in each case filed with the SEC and the Ontario Securities Commission in
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鈥檚 assessments as of any date subsequent to the date of this press release.
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Investor Relations & Media
Louie Diaz
Sheldon D'souza
Investor Relations: investors@li-cycle.com
Media: media@li-cycle.com
Source: Li-Cycle Holdings Corp.
FAQ
What is the structure of Li-Cycle's (LICY) new public offering?
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Will the warrants in Li-Cycle's (LICY) offering be traded on an exchange?
What over-allotment options are included in Li-Cycle's (LICY) offering?
