Li-Cycle Announces Completion of $50 Million Investment from LG Energy Solution and LG Chem

Rhea-AI Summary

Li-Cycle Holdings Corp. (NYSE: LICY) has completed a $50 million investment in its common shares from LG Energy Solution, Ltd. and LG Chem, Ltd. The investment was made in two tranches: approximately $44.2 million for 4,416,960 shares at $10.00 each, and $5.8 million for 883,392 shares at $6.60 each. Following this investment, LGES and LGC now hold approximately 3% of the company's shares. This partnership emphasizes Li-Cycle's commitment to sustainable lithium-ion battery recycling.

Positive

• Successful completion of a $50 million investment from LG Energy Solution and LG Chem.
• Partnership reinforces Li-Cycle's position as a leader in lithium-ion battery recycling.

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• None.

TORONTO--(BUSINESS WIRE)-- Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, today announced the successful completion of the previously announced $50 million aggregate investment in common shares of the Company (“Common Shares”) by LG Energy Solution, Ltd. (“LGES”) and LG Chem, Ltd. (“LGC”). LGES and LGC have each subscribed for an equal number of Common Shares, at an average subscription price of $9.43 per Common Share. Following the investment, LGES and LGC collectively hold 5,300,352 Common Shares, representing approximately 3% of the issued and outstanding Common Shares in the capital of the Company.

Under the terms of the Subscription Agreements with each of LGES and LGC entered into on December 13, 2021, as amended and restated on April 21, 2022, the investment was split into two tranches: (i) an initial tranche of 4,416,960 Common Shares, in the aggregate, at a price of $10.00 per share (for an aggregate initial tranche subscription price of approximately $44.2 million), and (ii) a second tranche of 883,392 Common Shares, in the aggregate, at a price of $6.60 per share, being the volume-weighted average trading price of Li-Cycle’s Common Shares for the 5 trading days ending immediately prior to April 29, 2022 (for an aggregate second tranche subscription price of approximately $5.8 million).

Additional information regarding this announcement may be found in a Form 6-K that will be filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission.

About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is on a mission to leverage its innovative Spoke & Hub Technologies™ to provide a customer-centric, end-of-life solution for lithium-ion batteries, while creating a secondary supply of critical battery materials. Lithium-ion rechargeable batteries are increasingly powering our world in automotive, energy storage, consumer electronics, and other industrial and household applications. The world needs improved technology and supply chain innovations to better manage battery manufacturing waste and end-of-life batteries and to meet the rapidly growing demand for critical and scarce battery-grade raw materials through a closed-loop solution. For more information, visit https://li-cycle.com/.

Forward-Looking Statements

Certain statements contained in this communication 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 “will”, “continue”, “anticipate”, “expect”, “estimate”, “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 may include, for example, the future financial performance of Li-Cycle and the anticipated benefits from the proposed collaboration with LGC and LGES, the growing global market demand for lithium-ion batteries and their raw material; the future financial performance of Li-Cycle and the development of the Rochester Hub. These statements are based on various assumptions, whether or not identified in this communication, which Li-Cycle believes are reasonable in the circumstances. 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.

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.

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. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled "Risk Factors" in its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada on January 31, 2022, and in other filings made by Li-Cycle with securities regulatory authorities. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005236/en/

Li-Cycle Holdings Corp.

Investor Relations

Nahla A. Azmy

investors@li-cycle.com



Press

Kunal Phalpher

media@li-cycle.com

Source: Li-Cycle Holdings Corp.

FAQ

What was the recent investment amount by LG Energy Solution and LG Chem in Li-Cycle?

LG Energy Solution and LG Chem invested a total of $50 million in Li-Cycle.

What is the average subscription price per common share in the recent investment by LGES and LGC?

The average subscription price per common share was $9.43.

What percentage of Li-Cycle's shares do LGES and LGC now hold after their investment?

LG Energy Solution and LG Chem collectively hold approximately 3% of Li-Cycle's issued common shares.

What were the two tranches of the investment by LGES and LGC?

The investment was split into two tranches: $44.2 million for 4,416,960 shares at $10.00 each and $5.8 million for 883,392 shares at $6.60 each.

When were the Subscription Agreements for the investment with LGES and LGC finalized?

The Subscription Agreements were entered on December 13, 2021, and amended on April 21, 2022.