Li-Cycle, a lithium-ion battery recycling company, announced the closing of its previously announced underwritten public offering, raising approximately $15 million in gross proceeds. The company plans to use the net proceeds from this offering for working capital and general corporate purposes. The offering consisted of 5,000,000 units and 10,000,000 pre-funded units.
Each unit was priced at $1, while each pre-funded unit was priced at $0.99999, reflecting a price per unit minus an exercise price of $0.00001 per pre-funded warrant. The initial exercise price of each Series A warrant is $1.00 per common share. The Series A warrants will be immediately exercisable and will expire on the eight-month anniversary of the initial date of issuance. The initial exercise price of each Series B Warrant is $1.00 per Common Share. The Series B Warrants will be immediately exercisable and will expire on the five-year anniversary of the initial date of issuance.
In connection with the offering, the company granted Aegis Capital Corp. a 45-day option to purchase additional common shares.
Aegis Capital Corp. served as the sole book-running manager for the offering on a firm commitment basis. Legal counsel for the transaction included Freshfields US, representing Li-Cycle, and Sichenzia Ross Ference Carmel, acting on behalf of Aegis Capital Corp.
As of December 31, 2024, Li-Cycle reported cash and cash equivalents of $22.6 million, down from $32.2 million as of September 30, 2024.
In November 2024, Li-Cycle agreed to a loan facility of up to $475 million through the U.S. Department of Energy Loan Programs Office’s (LPO) Advanced Technology Vehicles Manufacturing (ATVM) program. The DOE Loan Facility is expected to support the development of the company’s flagship Rochester Hub project in upstate New York.
Last year, the company agreed to issue a senior secured convertible note in an aggregate principal amount of $75 million from an affiliate of Glencore.
According to Mercom’s 9M and Q3 2024 Funding and M&A Report for Energy Storage and Smart Grid, corporate funding for Energy Storage companies in 9M 2024 reached $17.6 billion in 83 deals, a 15% increase year-over-year compared to $15.2 billion in 94 deals in 9M 2023.
