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Li-Cycle Holdings Corp., a leader in lithium-ion battery resource recovery, is facing significant financial difficulties. The company recently announced it is seeking buyers for its business or assets due to ongoing liquidity issues and the urgent need for additional funding to maintain operations.
Key Highlights
- Waiver Extensions: Li-Cycle secured extensions on waivers from convertible note holders, allowing its shares to trade on the OTCQX market until May 5, 2025.
- Financial Struggles: Despite these extensions, the company still needs more financing to cover its obligations and remain operational.
- Unsuccessful Transaction Efforts: Attempts to find a viable deal, including talks with Glencore, have not succeeded so far.
- Seeking Buyers: Li-Cycle has enlisted Hilco Corporate Finance to help identify potential buyers for its business or assets.
- Uncertain Outcome: There’s no certainty that buyers will be found or what terms any deal might involve.
The waiver extensions, granted by Glencore Canada Corporation and Wood River Capital, LLC, provide temporary relief by permitting Li-Cycle’s shares to remain on the OTCQX Best Market until 9:00 a.m. ET on May 5, 2025. However, this does not address the company’s deeper financial challenges.
For months, Li-Cycle has been assessing financial and strategic options to bolster its position. In March 2025, Glencore expressed interest in a potential transaction, but no workable agreement has emerged. With time running out, the company now faces the possibility of major operational changes or even liquidation if a solution isn’t found.
To navigate this crisis, Li-Cycle has turned to Hilco Corporate Finance, LLC, a financial services firm, to explore selling either the entire company or portions of its assets. While this step signals a proactive approach, the company has warned that success is not guaranteed.
Founded in 2016, Li-Cycle has aimed to revolutionize battery recycling and support a sustainable energy future. The outcome of this process will be pivotal for its survival and the industry at large.
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