TORONTO - Li-Cycle Holdings Corp. (NYSE: LICY), a leader in lithium-ion battery resource recovery with a current market capitalization of $41.8 million, has set the pricing for its public offering in the United States. According to InvestingPro data, the company, which has seen its stock decline over 64% in the past year, anticipates gross proceeds of approximately $15 million, before deductions for underwriting discounts and estimated offering expenses. The offering is expected to close on January 16, 2025, contingent on customary closing conditions.
The offering comprises 15 million units, with each unit containing one common share or a pre-funded warrant to purchase one common share, one Series A Warrant, and one Series B Warrant to purchase additional common shares. The Series A and Series B Warrants are exercisable at $1.00 per common share, with the Series A expiring eight months from issue and the Series B after five years. InvestingPro analysis indicates the company operates with a significant debt burden of $435.8 million and a concerning current ratio of 0.6, suggesting potential liquidity challenges.
Units are priced at $1.00 each, while pre-funded units are offered at $0.99999, accounting for the pre-funded warrants' nominal exercise price. Aegis Capital Corp., the sole book-running manager for the offering, has a 45-day option to buy up to an additional 15% of the common shares and warrants to cover over-allotments.
Li-Cycle plans to allocate the net proceeds towards working capital and general corporate purposes. The offering is made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on March 29, 2024. InvestingPro subscribers have access to 18 additional key insights about Li-Cycle's financial health, including detailed analysis of its cash flow and profitability metrics, available in the comprehensive Pro Research Report.
This announcement serves as a factual report based on a press release statement and does not constitute a sales offer or solicitation. The sale of securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction is prohibited.
In other recent news, Li-Cycle Holdings Corp. has made significant strides in its financial structure and revenue growth. The company reported a 79% surge in Q3 2024 revenue to $8.4 million, mainly driven by increased recycling service revenue and favorable metal prices. Concurrently, Li-Cycle secured a $475 million loan agreement with the U.S. Department of Energy for the construction of the Rochester Hub project in New York.
In a move to bolster its financial foundation, Li-Cycle expanded its agreements with Glencore (OTC:GLNCY) Canada Corporation, a key investor. This included a Note Guaranty, granting Glencore a first priority security interest in their assets. As a result of these financial adjustments, Glencore's pro forma fully-diluted ownership in Li-Cycle increased to approximately 66%.
These are among the recent developments in the company's strategic efforts to manage its financial obligations and partnerships. Analysts have indicated that Li-Cycle anticipates a significant increase in recycling materials by 2030, driven by the rising number of electric vehicles and manufacturing scrap. This aligns with the projected growth of the electric vehicle market in North America at a compound annual growth rate of approximately 20% from 2025 to 2030.
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