Li-Cycle Holdings Corp., a global leader in lithium-ion battery resource recovery, has announced it is seeking potential buyers for its business or assets amid ongoing financial challenges. The company disclosed that it has received waiver extensions from its convertible note holders, Glencore Canada Corporation and Wood River Capital, which allow its common shares to continue trading on the OTCQX® Best Market until 9:00 a.m. ET on May 5, 2025.
Despite the extension of these waivers, Li-Cycle faces the necessity of securing additional financing to fulfill its financial obligations and repay liabilities arising from routine business operations. The company’s special committee of independent directors has been actively evaluating various financial and strategic alternatives, including responses to a letter from Glencore dated March 14, 2025, which expressed interest in a potential transaction involving Li-Cycle. However, as of now, no viable transaction that aligns with the best interests of the company and its stakeholders has been identified.
Given the current financial situation, Li-Cycle may need to consider significant modifications or termination of its operations. This could include dissolving and liquidating its assets under applicable insolvency laws or potentially filing for insolvency protection if no suitable financial solutions are found.
To assist in this process, Li-Cycle has engaged Hilco Corporate Finance, LLC, and its affiliates to help identify and negotiate with potential buyers for its business or assets, either in whole or in part. The company has cautioned that there are no guarantees of finding buyers or determining the terms of any resulting transactions.
Li-Cycle Holdings Corp. was established in 2016 and operates globally, focusing on recovering critical battery-grade materials to support a domestic closed-loop battery supply chain aimed at fostering a clean energy future. The company collaborates with major customers and partners worldwide to advance its mission.
Source: Business Wire
