Latest news with #LiCycle
National Post
9 hours ago
- Business
- National Post
Li-Cycle Receives Cease Trade Order from Ontario Securities Commission
Article content TORONTO — Li-Cycle Holdings Corp. (OTC Pink Markets: LICYQ) ('Li-Cycle' or the 'Company'), a leading global lithium-ion battery resource recovery company, announced that, after close of markets on June 5, 2025, the Company received a cease trade order ('CTO') issued by the Ontario Securities Commission ('OSC') as a result of the Company's failure to file periodic disclosures required by Ontario securities legislation. Article content These disclosures include the interim financial statements, and management's discussion and analysis relating to such interim financial statements, for the period ended March 31, 2025, and certification of the foregoing filings as required by National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings. Article content Article content The CTO prohibits any person or company from trading, directly or indirectly, in any security of the Company in Ontario and each other jurisdiction of Canada that has a statutory reciprocal order provision, except in accordance with the conditions that are contained in the CTO, for as long as the CTO remains in effect. Article content A beneficial security holder of Li-Cycle who is not, and was not an insider or control person of the Company at the date of the CTO may sell securities of Li-Cycle acquired before the date of the CTO, if both of the following apply: Article content the sale is made through a 'foreign organized regulated market' (or 'FORM'), as defined in section 1.1 of the Universal Market Integrity Rules of the Canadian Investment Regulatory Organization; and the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. Article content Li-Cycle's common shares are currently quoted on the OTC Pink Markets, which generally does not meet the FORM criteria. Article content As previously disclosed, on May 14, 2025, Li-Cycle and its subsidiaries in North America sought and obtained from the Ontario Superior Court of Justice (the 'Court') an order (the 'Initial Order') providing them with creditor protection pursuant to Canada's Companies' Creditors Arrangement Act (the 'CCAA'). On May 15, 2025, the CCAA proceedings were recognized, and immediate stays of proceedings entered, by the United States Bankruptcy Court for the Southern District of New York pursuant to Chapter 15 of the United States Bankruptcy Code. Article content Given the ongoing CCAA proceedings and the Initial Order, as amended and restated on May 22, 2025, Li-Cycle has determined that it does not currently intend to devote additional time or financial resources towards its public disclosure obligations in Canada and the United States. Article content The Company's common shares are expected to remain qualified to trade on the OTC Pink Markets for 180 days from the period end date of its most recently filed Annual Report on Form 10-K, which was for the period ended December 31, 2024. As Li-Cycle does not currently intend to file disclosures required by the U.S. Securities and Exchange Commission ('SEC'), the Company expects it will be moved from the OTC Pink Markets to the OTC Expert Markets on or around June 30, 2025, pursuant to SEC Rule 15c2-11. Article content Holders of Li-Cycle securities are urged to consult with their own investment advisors or legal counsel regarding the implications of the CTO. Article content A copy of the CTO can be found on SEDAR+ at Additional information regarding the CCAA proceedings is available on the website of Alvarez & Marsal Canada Inc., the Court-appointed monitor of the Company during the CCAA proceedings, at About Li-Cycle Holdings Corp. Article content Li-Cycle (OTC Pink Markets: LICYQ) 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 Forward-Looking Statements 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 Company's expectation that its common shares will remain qualified to trade on the OTC Pink Markets for 180 days following December 31, 2024, and that its common shares will be moved from the OTC Pink Markets to the OTC Expert Markets on or around June 30, 2025 pursuant to SEC Rule 15c2-11. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the Company's current and future liquidity and financial resources and the Company's CCAA process. 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 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 Contacts Article content Investors & Media Article content Article content Investors: Article content Article content Article content
Yahoo
6 days ago
- Business
- Yahoo
Canada had big EV battery recycling plans, but without regulations it's the 'Wild West,' expert warns
A few years ago, Li-Cycle was one of the biggest players in electric vehicle battery recycling in North America, providing a roadmap to a circular, sustainable economy for electric vehicles. But just last month, the Toronto-based company filed for bankruptcy protection in the U.S. and Canada after years of struggling to get a facility off the ground in Rochester, N.Y. The company said the planned hub would have been able to extract lithium and other critical minerals from recycled material to actually build new EV batteries — a crucial step that North American recyclers haven't achieved on a commercial scale yet. The bankruptcy is a sign, some experts say, that the market can't sustain the industry without proper government regulation providing incentives and structure. EV batteries wear out over time, and with more than 600,000 EVs on the road in Canada, keeping those batteries out of landfills — and recovering the valuable critical minerals they contain — will be essential in the near future. But regulation around EV battery recycling is virtually nonexistent in Canada, and industry and policy experts say without it, we won't be ready when the waves of EV batteries hit the market. "There really is no regulatory or policy regime around this in North America," said Mark Winfield, a professor of environmental and urban change at Toronto's York University and co-chair of the school's Sustainable Energy Initiative. "It's a Wild West," he told CBC News. "The drivers that would generally … provide the sort of stability and the foundation for that kind of business just aren't there." Recent reports from the International Energy Association (IEA) and the World Economic Forum also emphasize the importance of establishing government regulation to track and ensure demand for recycled materials in EV batteries. Canada's federal government has laid out a plan to achieve 100 per cent zero-emission sales for passenger cars by 2035, but there's no national framework for EV batteries once they're too old to power a car. There are also no federal regulations around EV battery recycling, and B.C., the only province that had announced impending regulation, now says it's backing away from that plan. Meanwhile, EV sales are continuing to climb in Canada, with EVs making up 17 per cent of all new cars sold in 2024. Last year, more than 270,000 new vehicle registrations in Canada were battery-powered EVs or hybrid plug-in EVs. "Every EV that's sold is eventually going to turn into an end-of-consumer-life battery," Winfield said, adding that in a decade, there will be "tens of millions" of end-of-life EV batteries globally. The European Union set regulations in 2023 that Canada could use as a model, Winfield says, including requirements for recycled materials in new batteries starting in 2031, and expanded responsibilities for producers to monitor the lifespan of batteries. In a November 2024 report on how to scale up critical mineral recycling, the IEA recommended providing clear, long-term regulations which it noted are "crucial for instilling confidence in investors and recycling companies." Maria Kelleher, an environmental consultant who previously worked with Environment and Climate Change Canada on managing EV battery recycling, noted certain regulations would spur investment and help fledging projects scale up commercially in Canada and North America. "If the government says you have to have recycled content [in new batteries], it provides the recyclers with certainty, because the companies buying the product have to buy their product," she said. "So it does drive the market." Recycling lithium-ion batteries that power EVs happens in two stages. First, batteries are shredded into a substance called black mass, which contains critical minerals like cobalt, nickel and lithium. Then, minerals are extracted from black mass, refined and sold to make new batteries. This step is where Kelleher says recycling can become truly lucrative "The key is to sell into the battery supply chain," she said, noting that the recycled material extracted from black mass needs to be consistently high-quality for manufacturers to use it. "If you can do it, it's fantastic." Lithion Technologies in Quebec and B.C.'s RecycLiCo Battery Materials Inc. are among the recycling facilities in Canada that have started producing black mass from EV batteries in recent years. And Ontario-based Electra Battery Materials has been operating a successful recycling trial since 2022, but hasn't reached commercial production yet. They're aiming to build a new plant in a joint venture with Three Fires Group in northern Ontario that they say could begin recycling EV batteries in 2027. But extracting minerals from black mass to make new batteries is mostly concentrated overseas, especially in China and south-east Asia where the EV battery recycling industry has grown up alongside manufacturing. Kelleher believes there's still plenty of time for the market to find its footing before regulation is needed in Canada. EV batteries were originally predicted to last eight years, but now, they have an estimated 12 to 15 year lifespan in vehicles. They also retain 80 per cent of their capacity after use in vehicles, and can last up to 10 more years when repurposed for a second-life, according to industry reports and experts. That's what Vancouver-based Moment Energy is trying to achieve by partnering with automakers and dealerships to repurpose old EV batteries for use in energy storage systems. Samreen Rattan, Moment Energy's co-founder and chief operating officer, told CBC News they're already seeing demand for repurposing ramp up, and expect the first peak to start in 2030. "In order for this to truly be streamlined, I think having a federal policy would go a long way," Rattan said, adding that guidelines are necessary so the repurposing step isn't skipped. Ultimately, Kelleher says regulations aren't necessarily needed until the EV battery recycling market develops a more secure supply, something she says "won't happen until you have scale, until you have enough batteries at end-of-life." But Winfield argues we need to move now in order to have the infrastructure to deal with the spent batteries poised to enter the recycling market in waves. Based on yearly new vehicle registrations of EVs in Canada since 2011, and assuming a 12-year lifespan within a vehicle and a 10-year secondary use lifespan, there will be at least 93,000 EV batteries that require recycling by 2040, with a further 500,000 ready between 2040 and 2045. "I don't think there's any excuse for not getting ahead of this," Winfield said. "It would be a monumental lack of foresight." Environment and Climate Change Canada (ECCC) told CBC News in an emailed statement that managing EV batteries at their end-of-life is up to provinces and territories. ECCC pointed to B.C.'s 2021 announcement that it would add EV batteries to its extended producer responsibility program by 2026, which would require EV automakers to arrange for their batteries to be recycled or reused. Except B.C. told CBC News that it will no longer be adding EV batteries to the program by 2026. The provincial Ministry of Environment and Parks said the change came after consultation "with industry and other impacted parties" and in light of "significant global changes in the rapidly evolving electric vehicle (EV) battery market." It also said it "may explore further consultation," but did not provide a new timeline for when regulation might be considered. WATCH | Canada's push to figure out what to do with EV batteries after they die: ECCC also pointed to a voluntary battery recovery program initiated in Quebec in 2023. This program allows consumers to reach out to partnering automakers that will pick up drained batteries and arrange next steps. Quebec considered adding EV batteries to an extended producer responsibility program in 2021, but after receiving feedback from the industry, the province said it dropped the idea. The province also held two workshops in 2023 and 2024 to explore "whether and how this sector should be regulated," according to an emailed statement. Ontario, which has one of the highest rates of EV adoption in Canada told CBC News it doesn't have plans to include EV batteries in its producer requirements because they're "diverted from landfills through voluntary initiatives." The province's Ministry of the Environment, Conservation and Parks said it would "continue to monitor the management activities" to see if regulations should be introduced in the future. Automakers and industry players in Canada say they are already arranging recycling on their own — most offer country-wide recovery of EV batteries, and many have partnered with recycling plants for battery shredding. However, without oversight, the success of these initiatives is unclear. Winfield says the government responses are "really quite shocking," and show that the situation is even worse than it was in 2023, when he first worked on a report assessing the lack of regulation. He wants to see Canada follow the lead of the European Union, which in 2023 added requirements for a carbon footprint declaration for EV batteries, expanded producer responsibilities and introduced a "battery passport" to establish a transparent digital record for the life cycle of every single battery. It also imposed minimum requirements starting in 2031 for how much recycled content must be included in new batteries. "That provides a framework of stability for the sector, a set of rules that say, 'Yes, there's going to be a need for these kinds of services, there are going to be rules around them,' " Winfield said. "Without a regulatory framework around this, there is no viable business model."
CBC
6 days ago
- Business
- CBC
Canada had big EV battery recycling plans, but without regulations it's the 'Wild West,' expert warns
Social Sharing A few years ago, Li-Cycle was one of the biggest players in electric vehicle battery recycling in North America, providing a roadmap to a circular, sustainable economy for electric vehicles. But just last month, the Toronto-based company filed for bankruptcy protection in the U.S. and Canada after years of struggling to get a facility off the ground in Rochester, N.Y. The company said the planned hub would have been able to extract lithium and other critical minerals from recycled material to actually build new EV batteries — a crucial step that North American recyclers haven't achieved on a commercial scale yet. The bankruptcy is a sign, some experts say, that the market can't sustain the industry without proper government regulation providing incentives and structure. EV batteries wear out over time, and with more than 600,000 EVs on the road in Canada, keeping those batteries out of landfills — and recovering the valuable critical minerals they contain — will be essential in the near future. But regulation around EV battery recycling is virtually nonexistent in Canada, and industry and policy experts say without it, we won't be ready when the waves of EV batteries hit the market. "There really is no regulatory or policy regime around this in North America," said Mark Winfield, a professor of environmental and urban change at Toronto's York University and co-chair of the school's Sustainable Energy Initiative. "It's a Wild West," he told CBC News. "The drivers that would generally … provide the sort of stability and the foundation for that kind of business just aren't there." Recent reports from the International Energy Association (IEA) and the World Economic Forum also emphasize the importance of establishing government regulation to track and ensure demand for recycled materials in EV batteries. Canada's federal government has laid out a plan to achieve 100 per cent zero-emission sales for passenger cars by 2035, but there's no national framework for EV batteries once they're too old to power a car. There are also no federal regulations around EV battery recycling, and B.C., the only province that had announced impending regulation, now says it's backing away from that plan. Meanwhile, EV sales are continuing to climb in Canada, with EVs making up 17 per cent of all new cars sold in 2024. Last year, more than 270,000 new vehicle registrations in Canada were battery-powered EVs or hybrid plug-in EVs. "Every EV that's sold is eventually going to turn into an end-of-consumer-life battery," Winfield said, adding that in a decade, there will be "tens of millions" of end-of-life EV batteries globally. The European Union set regulations in 2023 that Canada could use as a model, Winfield says, including requirements for recycled materials in new batteries starting in 2031, and expanded responsibilities for producers to monitor the lifespan of batteries. In a November 2024 report on how to scale up critical mineral recycling, the IEA recommended providing clear, long-term regulations which it noted are "crucial for instilling confidence in investors and recycling companies." Maria Kelleher, an environmental consultant who previously worked with Environment and Climate Change Canada on managing EV battery recycling, noted certain regulations would spur investment and help fledging projects scale up commercially in Canada and North America. "If the government says you have to have recycled content [in new batteries], it provides the recyclers with certainty, because the companies buying the product have to buy their product," she said. "So it does drive the market." How EV battery recycling works Recycling lithium-ion batteries that power EVs happens in two stages. First, batteries are shredded into a substance called black mass, which contains critical minerals like cobalt, nickel and lithium. Then, minerals are extracted from black mass, refined and sold to make new batteries. This step is where Kelleher says recycling can become truly lucrative "The key is to sell into the battery supply chain," she said, noting that the recycled material extracted from black mass needs to be consistently high-quality for manufacturers to use it. "If you can do it, it's fantastic." Lithion Technologies in Quebec and B.C.'s RecycLiCo Battery Materials Inc. are among the recycling facilities in Canada that have started producing black mass from EV batteries in recent years. And Ontario-based Electra Battery Materials has been operating a successful recycling trial since 2022, but hasn't reached commercial production yet. They're aiming to build a new plant in a joint venture with Three Fires Group in northern Ontario that they say could begin recycling EV batteries in 2027. But extracting minerals from black mass to make new batteries is mostly concentrated overseas, especially in China and south-east Asia where the EV battery recycling industry has grown up alongside manufacturing. Giving batteries a second life Kelleher believes there's still plenty of time for the market to find its footing before regulation is needed in Canada. EV batteries were originally predicted to last eight years, but now, they have an estimated 12 to 15 year lifespan in vehicles. They also retain 80 per cent of their capacity after use in vehicles, and can last up to 10 more years when repurposed for a second-life, according to industry reports and experts. That's what Vancouver-based Moment Energy is trying to achieve by partnering with automakers and dealerships to repurpose old EV batteries for use in energy storage systems. Samreen Rattan, Moment Energy's co-founder and chief operating officer, told CBC News they're already seeing demand for repurposing ramp up, and expect the first peak to start in 2030. "In order for this to truly be streamlined, I think having a federal policy would go a long way," Rattan said, adding that guidelines are necessary so the repurposing step isn't skipped. Ultimately, Kelleher says regulations aren't necessarily needed until the EV battery recycling market develops a more secure supply, something she says "won't happen until you have scale, until you have enough batteries at end-of-life." But Winfield argues we need to move now in order to have the infrastructure to deal with the spent batteries poised to enter the recycling market in waves. Based on yearly new vehicle registrations of EVs in Canada since 2011, and assuming a 12-year lifespan within a vehicle and a 10-year secondary use lifespan, there will be at least 93,000 EV batteries that require recycling by 2040, with a further 500,000 ready between 2040 and 2045. "I don't think there's any excuse for not getting ahead of this," Winfield said. "It would be a monumental lack of foresight." So what are Canadian governments doing? Environment and Climate Change Canada (ECCC) told CBC News in an emailed statement that managing EV batteries at their end-of-life is up to provinces and territories. ECCC pointed to B.C.'s 2021 announcement that it would add EV batteries to its extended producer responsibility program by 2026, which would require EV automakers to arrange for their batteries to be recycled or reused. Except B.C. told CBC News that it will no longer be adding EV batteries to the program by 2026. The provincial Ministry of Environment and Parks said the change came after consultation "with industry and other impacted parties" and in light of "significant global changes in the rapidly evolving electric vehicle (EV) battery market." It also said it "may explore further consultation," but did not provide a new timeline for when regulation might be considered. WATCH | Canada's push to figure out what to do with EV batteries after they die: EVs and e-bikes are more popular than ever. Are all those batteries headed for landfills? 11 months ago Duration 2:31 There's a push in Quebec to find new technology that could help recycle materials found in rechargeable batteries, like those in electric cars and e-bikes. ECCC also pointed to a voluntary battery recovery program initiated in Quebec in 2023. This program allows consumers to reach out to partnering automakers that will pick up drained batteries and arrange next steps. Quebec considered adding EV batteries to an extended producer responsibility program in 2021, but after receiving feedback from the industry, the province said it dropped the idea. The province also held two workshops in 2023 and 2024 to explore "whether and how this sector should be regulated," according to an emailed statement. Ontario, which has one of the highest rates of EV adoption in Canada told CBC News it doesn't have plans to include EV batteries in its producer requirements because they're "diverted from landfills through voluntary initiatives." The province's Ministry of the Environment, Conservation and Parks said it would "continue to monitor the management activities" to see if regulations should be introduced in the future. Automakers and industry players in Canada say they are already arranging recycling on their own — most offer country-wide recovery of EV batteries, and many have partnered with recycling plants for battery shredding. However, without oversight, the success of these initiatives is unclear. EU rules could provide 'framework of stability' Winfield says the government responses are "really quite shocking," and show that the situation is even worse than it was in 2023, when he first worked on a report assessing the lack of regulation. He wants to see Canada follow the lead of the European Union, which in 2023 added requirements for a carbon footprint declaration for EV batteries, expanded producer responsibilities and introduced a "battery passport" to establish a transparent digital record for the life cycle of every single battery. It also imposed minimum requirements starting in 2031 for how much recycled content must be included in new batteries. "That provides a framework of stability for the sector, a set of rules that say, 'Yes, there's going to be a need for these kinds of services, there are going to be rules around them,' " Winfield said.
National Post
15-05-2025
- Business
- National Post
Li-Cycle Obtains Creditor Protection Under CCAA and Chapter 15
Article content Li-Cycle expects to commence a formal sale and investment solicitation process ('SISP'), which is a continuation of its efforts to seek buyers for its business or assets 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 that the Company and its subsidiaries in North America (collectively, the 'Li-Cycle Group') have sought and obtained from the Ontario Superior Court of Justice (the 'Court') an order (the 'Initial Order') providing them with creditor protection pursuant to Canada's Companies' Creditors Arrangement Act (the 'CCAA'). As part of the Initial Order, the Court ordered, among other things, a stay of proceedings in favor of the Li-Cycle Group for an initial period to and including May 22, 2025 (the 'Stay Period') and the appointment of Alvarez & Marsal Canada Inc. as monitor of the Li-Cycle Group during the CCAA proceedings (in such capacity, the 'Monitor') to assist the Company with its restructuring efforts and to report to the Court. Article content The Company's U.S. subsidiaries (including Li-Cycle Inc., which owns the Company's Spokes in Arizona, Alabama and New York, and Li-Cycle North America Hub, Inc., which owns the Company's Rochester Hub project) have commenced proceedings before the United States Bankruptcy Court for the Southern District of New York (the 'U.S. Bankruptcy Court') under Chapter 15 of the U.S. Bankruptcy Code ('Chapter 15 Proceedings') for recognition of the CCAA proceedings as a 'foreign main proceeding.' The U.S. Bankruptcy Court has imposed a broad stay, for the benefit of the Company's U.S. subsidiaries, barring the commencement of legal action, the enforcement of remedies, any act to obtain possession of their property in the United States or to exercise control over such property, and other similar conduct. Article content As part of the CCAA proceedings, the Li-Cycle Group expects to conduct a court-supervised sale and investment solicitation process (the 'SISP'), which will be a continuation of its previously disclosed efforts to seek buyers for its business or its assets. Article content The Li-Cycle Group has entered into a term sheet with an affiliate of Glencore Canada Corporation ('Glencore'), the Company's largest secured creditor, for a DIP Facility. The DIP Facility consists of a credit facility of up to a maximum principal amount of $10.5 million which is expected to be used to finance Li-Cycle's working capital requirements, including for the continued operation of its Germany Spoke, and to implement the restructuring contemplated in the CCAA proceedings, such as the pursuit of the SISP. The DIP Facility remains subject to approval by the CCAA Court. Article content Additionally, the Li-Cycle Group has entered into an equity and asset 'stalking horse' purchase agreement (the 'Stalking Horse Agreement') with Glencore. Glencore has agreed to a 'stalking horse' credit bid for at least $40 million for certain of Li-Cycle's subsidiaries and assets, including its Arizona Spoke, Alabama Spoke, New York Spoke, Germany Spoke, Rochester Hub project, and its intellectual property, as well as assumption of certain of its liabilities. The Stalking Horse Agreement remains subject to approval by the CCAA Court. Article content The Company's Germany Spoke is expected to have sufficient working capital (including through the DIP Facility) to continue operating during the CCAA proceedings. Li-Cycle is undertaking efforts to wind down certain of its European subsidiaries, with the exception of its operating businesses in Switzerland and Germany. The Company will also be winding down its subsidiaries in Asia. Article content As a result of the CCAA Proceedings, an event of default has occurred under Li-Cycle's loan agreement with the U.S. Department of Energy ('DOE'). Li-Cycle has not drawn down any funds under the DOE loan facility, as the Company has not satisfied the conditions precedent for the first advance. Article content The CCAA Proceedings have also caused an event of default under the Company's convertible notes, which are held by Glencore and Wood River Capital, LLC ('Wood River Capital'). Wood River Capital now would have, in the absence of the stay of proceedings, the right to require the redemption of its convertible notes. The event of default under the Company's convertible notes held by Glencore has resulted in an automatic acceleration such that the principal, interest and any make-whole premium due thereunder have become immediately due and payable. Article content As previously disclosed, the Company has been actively reducing its cost structure and seeking financing and strategic alternatives to fund its business. However, following a thorough review and after careful consideration of all available alternatives and in consultation with legal and financial advisors, the Company's Board of Directors, following receipt of the recommendation of the Company's Special Committee of independent directors, determined that it was in the best interests of the Company to commence the CCAA proceedings, with a view to pursuing the SISP and implementing one or more transactions with respect to its business and assets. Article content The Company's Board of Directors and management will remain responsible for the day-to-day operations of the Company under the general oversight of the Monitor during the CCAA proceedings. Article content The Initial Order provides the Company with, among other things, relief from certain reporting obligations under securities legislation. As a result of the commencement of Chapter 15 Proceedings, the Company will no longer qualify to trade on the OTCQX® Best Market and will be moved to the OTC Pink Markets effective May 15, 2025. Article content At the 'comeback' hearing before the CCAA Court on May 22, 2025, the Li-Cycle Group intends to seek, among other things, approval of the DIP Facility, the SISP and the Stalking Horse Agreement as a 'stalking horse' credit bid in the SISP and an extension of the Stay Period until a subsequent date to be determined. Article content Additional information regarding the CCAA proceedings is available on the Monitor's website at or by calling Alvarez & Marsal at 1-844-864-9548, or by emailing at LiCycle@ Documents relating to the restructuring process such as the Initial Order, the Monitor's reports to the Court, as well as other Court orders and documents shall also be published and made available on the Monitor's website. Article content About Li-Cycle Holdings Corp. 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. Article content 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 expected court-supervised sale and investment solicitation process; the expected use of the DIP Facility; the expectation that the Company's Germany Spoke will have sufficient working capital (including through the DIP Facility) to continue operating during the CCAA proceedings; Li-Cycle undertaking efforts to wind down certain of its European subsidiaries, with the exception of its operating businesses in Switzerland and Germany; the Company winding down its subsidiaries in Asia; the transfer of the quotation of the Company's common shares to the OTC Pink Markets effective May 15, 2025; the terms of any resulting transactions with any such buyers of Li-Cycle's business or its assets, including the Stalking Horse Agreement with Glencore; and what the Company intends to seek at the 'comeback' hearing before the CCAA Court on May 22, 2025, including an extension of the Stay Period until a subsequent date to be determined. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the working capital of the Company's operating businesses in Switzerland and Germany. 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 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
National Post
12-05-2025
- Business
- National Post
Li-Cycle Receives Further Waiver Extensions from Convertible Note Holders
Article content 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 that it has received further waiver extensions from the holders of its convertible notes, Glencore Canada Corporation ('Glencore') and Wood River Capital, LLC ('Wood River Capital' and together with Glencore, the 'Convertible Note Holders') to permit the Company's common shares to continue to trade on the OTCQX ® Best Market ('OTCQX') as an eligible market under the terms of the convertible notes until 11:59 p.m. ET on Tuesday, May 13, 2025. Article content Li-Cycle had previously disclosed that it had received waiver extensions from the Convertible Note Holders to trade on the OTCQX as an eligible market under the terms of the convertible notes until 11:59 p.m. ET on Friday, May 9, 2025. Article content Regardless of the extended waivers, as previously disclosed and considering the Company's current circumstances, Li-Cycle will need to significantly modify or terminate its operations and may need to dissolve and liquidate its assets under applicable insolvency laws or otherwise file for insolvency protection. Article content Li-Cycle has retained Alvarez & Marsal Corporate Finance, and certain of its affiliates, to assist in seeking buyers for its business or its assets, including the Company as a whole or any part. No assurances can be made as to whether any such buyers will be found, or as to the terms of any resulting transactions. 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 need to significantly modify or terminate Li-Cycle's operations, dissolve or liquidate assets under applicable insolvency laws or otherwise file for insolvency protection; the efforts to seek buyers for Li-Cycle's business or its assets, including Li-Cycle as a whole or in any part; and the terms of any resulting transactions with any such buyers of Li-Cycle's business or its assets. 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 feasibility and actionability of various financial and strategic alternatives for Li-Cycle; the timing, scope and cost of any dissolution, liquidation or insolvency; general economic conditions; currency exchange and interest rates; 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
