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National Post
01-05-2025
- Business
- National Post
Li-Cycle Announces Leadership and Operational Changes
Article content TORONTO — Li-Cycle Holdings Corp. (OTCQX: LICYF) ('Li-Cycle' or the 'Company'), a leading global lithium-ion battery resource recovery company, today announced leadership and operational changes. Article content Article content As announced by Li-Cycle earlier today, the Company is undertaking a process to seek buyers for its business or its assets and is retaining Hilco Corporate Finance, LLC, a financial services company, and certain of its affiliates, to support the sales process. Article content Leadership Updates Article content Li-Cycle is announcing the following leadership changes. Article content Ajay Kochhar has stepped down from Li-Cycle's Board of Directors and, on May 15, 2025, will transition from President and CEO to a senior advisory role for the Company to support its sales process. Mr. Kochhar co-founded Li-Cycle in 2016 and has provided strong leadership and a strategic vision as Li-Cycle developed its patented technology, completed its successful initial public offering, and grew to become a leading company in the lithium-ion battery recycling market. Article content William Aziz, FCPA, FCA has been appointed by Li-Cycle's Board of Directors as Chief Restructuring Officer ('CRO'). Mr. Aziz has over 35 years of corporate restructuring experience, playing a key role in major Canadian restructurings, including as the CRO of Walter Energy Canada and UK, The Toronto Star Group and U.S. Steel Canada. He is a seasoned senior executive and director with deep experience in multi-party negotiations, strategic partnerships, mergers, acquisitions and divestitures. He is currently President and CEO of BlueTree Advisors, Inc. and a Board member of Maple Leaf Foods Inc. Article content Craig Cunningham, Chief Financial Officer ('CFO'), has stepped down as CFO. Since first joining Li-Cycle in March 2024, Mr. Cunningham has made many contributions to strengthen the Company's financial processes. Article content Michelle Faysal, FCPA, FCA has joined Li-Cycle as interim CFO. Ms. Faysal has extensive experience as a hands-on senior executive and director. She has provided strategic direction and leadership through her independent consultancy practice in the corporate and not-for-profit sectors. Ms. Faysal was at Ernst & Young, LLP for over 20 years earlier in her career. Article content Jacqui Dedo, independent Chair of Li-Cycle's Board of Directors, commented: 'Li-Cycle's mission and technology provides an important capability to the growing market need of critical materials recycling and energy security independence. On behalf of the Board, we want to thank all the stakeholders who have supported us in this key mission, and especially Ajay for his vision and leadership as co-founder and CEO, and our employees for their hard work and dedication to the Company.' Article content Operational Updates Article content Li-Cycle is also taking steps to curtail operations to optimize liquidity and support the Company's sale process. The Company has commenced the process to suspend operations in a safe and compliant manner at its Arizona Spoke and Alabama Spoke recycling facilities. As a result, the Company will be furloughing approximately 85 employees at these facilities. The Company is also reducing its workforce by approximately 32 positions, primarily at its Toronto headquarters. Article content Operations at the Germany Spoke are currently continuing. Article content Li-Cycle (OTCQX: LICYF) 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. For more information, visit Article content 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 efforts to seek buyers for Li-Cycle's business or its assets; the transition of Mr. Kochhar into an advisory role with the Company; the curtailing of Li-Cycle's operations to optimize liquidity and support the Company's sale process; the furloughing of employees at the Arizona and Alabama Spokes, and the reduction in Li-Cycle's workforce; and the continuation of operations at the Germany Spoke. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding Li-Cycle's funds and sources of liquidity; the timing and scope of any significant modifications or terminations to Li-Cycle's operations; the purchase value of Li-Cycle's projects, facilities and other assets; the timing, scope and cost of any dissolution, liquidation or insolvency; the timing and scope of any efforts to curtail or suspend operations at the Arizona and Alabama Spokes, or reduce Li-Cycle's workforce; the timing, scope and cost of Li-Cycle's continuing projects and facilities; 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. Article content 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. Article content 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 develop the Rochester Hub and other future projects as anticipated or at all 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; Li-Cycle's ability to negotiate a strategic transaction with Glencore on acceptable terms, or at all; Li-Cycle's estimated total addressable market; 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 any possible further 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 capital projects 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; Li-Cycle's reliance on the experience and expertise of senior management and key personnel; the potential for Li-Cycle's directors and officers who hold Company common shares to have interest that may differ from, or be in conflict with, the interests of other shareholders; Li-Cycle's insurance may not cover all liabilities and damages; Li-Cycle's reliance on limited number of commercial partners to generate revenue; customer demand for recycled materials; an active, liquid trading market for our common shares may not be sustained; Li-Cycle's inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; 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 risk that Li-Cycle may lose access to funding under the DOE loan facility; risk of litigation or regulatory proceedings that could materially adversely impact Li-Cycle's financial results; and the terms of the warrants. These and other risks and uncertainties related to Li-Cycle's business are described in greater detail in the section titled 'Part I – Item 1A. Risk Factors' and 'Part II – Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation' in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC 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. Article content Article content Article content Article content Article content
Yahoo
01-04-2025
- Business
- Yahoo
Li-Cycle releases 2024 year-end report: Revenue up, costs down, no new plans for Rochester Hub
ROCHESTER, N.Y. (WROC) — Li-Cycle, the Canadian battery recycler that paused construction on the Rochester Hub in 2023, has released its 2024 year-end financial report. The company reported a 53% increase in revenue year-over-year, reaching $28.0 million in 2024. In addition to increasing revenue, the company also reported a 13% in expenses. Li-Cycle attributes both to the pause of the Rochester Hub. Li-Cycle pauses construction of Rochester facility due to costs However, the company acknowledged that without additional resources, Li-Cycle 'will need to significantly modify or terminate its operations and may need to dissolve and liquidate its assets under applicable bankruptcy laws or otherwise file for bankruptcy protection.' In the report, Li-Cycle said that is not aware of additional financial resources. Li-Cycle was de-listed from the New York Stock Exchange in early March. As part of that acknowledgement, Li-Cycle said that a special committee is investigating a letter from the Swedish material company Glencore regarding its intent to enter into a 'special transaction' involving Li-Cycle. Glencore previously invested $75 million into Li-Cycle. In 2024, the company also said it closed on a new $475 million loan from the federal government. That loan would not be paid out until construction on the Hub is finished. Li-Cycle's Q2 2024 report 'We believe we are well-positioned to support, and are aligned with, the energy priorities of the U.S. government as they look to bolster and onshore the energy supply chain through the domestic production of critical minerals,' said Ajay Kochhar, CEO of Li-Cycle, in a statement. 'Looking ahead, we are focused on managing our cash position while considering our financial and strategic alternatives.' Construction on the Rochester Hub was paused in 2023 due to ballooning construction costs, which hit nearly one billion dollars. Stick with News 8 on this developing story. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
27-02-2025
- Business
- Yahoo
OTC Markets Group Welcomes Li-Cycle Holdings Corp. to OTCQX
NEW YORK, Feb. 27, 2025 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced that Li-Cycle Holdings Corp. (OTCQX: LICYF), a leading global lithium-ion battery resource recovery company, has qualified to trade on the OTCQX® Best Market. Li-Cycle Holdings Corp. previously traded on the New York Stock Exchange. Li-Cycle Holdings Corp. begins trading today on OTCQX under the symbol 'LICYF.' U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on Trading on the OTCQX Market offers companies efficient, cost-effective access to the U.S. capital markets. Streamlined market requirements for OTCQX are designed to help companies lower the cost and complexity of being publicly traded, while providing transparent trading for their investors. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance, and demonstrate compliance with applicable securities laws. 'We are pleased to start trading on OTCQX, which is expected to reduce our costs while continuing to provide us efficient access to U.S. capital markets,' said Ajay Kochhar, Li-Cycle President and CEO. 'We remain focused on providing value for all stakeholders and advancing our key priorities, which include securing a complete funding package for our Rochester Hub project and satisfying funding conditions for 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 domestically produce critical minerals.' About Li-Cycle Holdings 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. About OTC Markets Group Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC. To learn more about how we create better informed and more efficient markets, visit Subscribe to the OTC Markets RSS Feed Media Contact:OTC Markets Group Inc., +1 (212) 896-4428, media@
