Li-Cycle Holdings Corp., a global lithium-ion battery resource recovery company, announced that Glencore Canada Corporation and Wood River Capital, LLC have granted additional waiver extensions under the terms of the company’s outstanding convertible notes. These extensions allow Li-Cycle’s common shares to continue trading on the OTCQX® Best Market through 11:59 p.m. Eastern Time on May 13, 2025. The company previously secured a waiver extension permitting trading through May 9, 2025.
Despite these extensions, Li-Cycle has indicated that its financial position may require significant operational changes. The company noted that it may need to modify or wind down operations, pursue dissolution and asset liquidation under applicable insolvency laws, or file for insolvency protection if it cannot secure additional liquidity or strategic alternatives.
To explore potential transaction opportunities, Li-Cycle has engaged Alvarez & Marsal Corporate Finance and certain of its affiliates. The advisor team will assist in marketing the company as a going concern or in divesting individual assets. Li-Cycle cautioned that there is no guarantee any buyers will emerge or that transaction terms will meet its objectives.
Founded in 2016, Li-Cycle focuses on recovering battery-grade materials from end-of-life lithium-ion batteries and manufacturing scrap, aiming to establish a domestic closed-loop supply chain for critical battery metals. The company serves major customers and partners worldwide and operates Spoke and Hub facilities designed to process and refine black mass into battery materials.
Li-Cycle’s board and management continue to evaluate all strategic alternatives, including recapitalization, sale transactions, and other financial restructuring measures. The company intends to update stakeholders as developments occur.
Source: Business Wire
