Li-Cycle Receives Continued Listing Standard Notice from NYSE
- None.
- The company is facing potential delisting from the NYSE if it fails to bring its average closing share price to at least $1.00 within the six-month period.
Insights
The notification received by Li-Cycle Holdings Corp. from the NYSE regarding non-compliance with the minimum stock price requirement is a critical signal for market participants. It is essential to understand that the stock price threshold is a common regulatory measure used by stock exchanges to filter out companies that may not be meeting certain financial health criteria.
For investors, this development could indicate underlying issues with the company's valuation or investor confidence. It is pertinent to analyze the company's performance, market position and future growth prospects. Investors should consider the competitive landscape of the lithium-ion battery recycling industry, which is growing due to the rising demand for electric vehicles and sustainable practices.
Additionally, the potential for a reverse stock split or other strategic financial maneuvers to boost share price should be monitored closely. These actions can have both positive and negative connotations, as they may improve compliance but also signal financial distress.
Li-Cycle's situation with the NYSE highlights the importance of share price as a liquidity and market confidence indicator. The six-month period to rectify the share price is a grace period that allows the company to take corrective action without immediate delisting repercussions. However, this scenario often leads to increased volatility of the stock as the market reacts to both the news and the company's strategic decisions.
From a financial perspective, it's crucial to examine Li-Cycle's balance sheet, income statement and cash flow to assess whether the current stock price accurately reflects the company's economic health or if market overreaction is at play. The company's ability to regain compliance may hinge on its operational efficiency, cost management and revenue growth. If Li-Cycle's fundamentals remain strong, the current share price could represent a disconnect between market perception and intrinsic value.
Long-term implications for stakeholders include the potential for increased scrutiny from investors and analysts, which could lead to a reassessment of the company's financial strategies and operational priorities.
From a legal standpoint, the Notice from the NYSE is a procedural matter that invokes specific regulatory frameworks governing publicly traded companies. Li-Cycle's receipt of the Notice triggers disclosure obligations, which the company has fulfilled by informing the public and regulatory bodies. The company's transparent communication is crucial for maintaining trust with shareholders and the market at large.
Li-Cycle's approach to curing the deficiency will need to be carefully crafted to comply with both NYSE regulations and broader securities laws. The company's management must navigate this situation while avoiding any actions that could be construed as manipulative or misleading to the market. Shareholders should be aware of the legal processes and timelines involved in these compliance matters, as they can affect share price and ownership rights.
Moreover, the company's ongoing compliance with other NYSE listing requirements and its reporting obligations under the U.S. Securities and Exchange Commission or the Ontario Securities Commission remains vital to its legal standing and investor relations.
Li-Cycle has advised the NYSE of its intention to cure the deficiency and is considering all available options in this regard. Under the NYSE’s rules, Li-Cycle has a six-month period following receipt of the Notice to bring its average closing share price to at least
The Notice has no immediate effect on the listing of the Company’s common shares on the NYSE, subject to the Company’s compliance with the NYSE’s other continued listing requirements, and does not affect Li-Cycle’s ongoing business operations or its reporting obligations under the rules of the
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company and North America’s largest pure-play lithium-ion battery recycler, with a rapidly growing presence across
Forward-Looking Statements
Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the
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. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: additional funds required to meet Li-Cycle’s capital and operating requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle may engage in strategic transactions, including financing and mergers and acquisitions activity, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of secured and unsecured debt, or prove not to be successful; 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 successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub, and other future projects including its Spoke network expansion projects 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 failure to materially increase recycling capacity and efficiency; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; 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 securing 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 revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle is, and may become, subject to legal proceedings that could require Li-Cycle to incur significant legal expenses and divert management’s attention away from operating Li-Cycle’s business; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; 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’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled “Risk Factors” and “Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 20-F filed with the
Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231229005192/en/
Investor Relations
Nahla A. Azmy
Sheldon D’souza
investors@li-cycle.com
Media
Louie Diaz
media@li-cycle.com
Source: Li-Cycle Holdings Corp.
FAQ
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