SCHEDULE: Armistice Capital Discloses 7.57% Stake in Li-Cycle

Armistice Capital, LLC and Steven Boyd have reported beneficial ownership of 3,372,000 shares, representing 7.57% of Li-Cycle Holdings Corp.'s common stock.

Summary

• Armistice Capital, LLC and Steven Boyd have filed an amended Schedule 13G, reporting their beneficial ownership of Li-Cycle Holdings Corp. common stock.
• The reporting persons collectively own 3,372,000 shares, which constitutes 7.57% of the class of securities.
• Armistice Capital, LLC acts as the investment manager for Armistice Capital Master Fund Ltd., the direct holder of the shares.
• Steven Boyd, as the managing member of Armistice Capital, LLC, may be deemed to beneficially own these shares.
• The filing indicates shared voting and dispositive power over these shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as neutral to slightly positive, indicating a significant but not controlling stake. The disclosure itself is routine for institutional investors.

Positives

• Significant institutional ownership established by Armistice Capital, potentially signaling confidence in Li-Cycle's long-term prospects.
• The 7.57% stake represents a substantial investment, suggesting a notable interest in the company's performance and governance.

Negatives

• The filing does not provide specific details on the investment strategy or future intentions beyond standard disclosure requirements.
• The Master Fund disclaims beneficial ownership due to the investment management agreement, which could be a point of complexity for some investors.

Risks

• Potential for increased market volatility if Armistice Capital decides to significantly alter its position.
• The investment is subject to the general risks associated with the lithium-ion battery recycling industry, including market demand, technological advancements, and regulatory changes.

Future Outlook

The filing itself is a disclosure of current ownership and does not contain forward-looking statements or specific future guidance from the company.

Management Comments

• Armistice Capital, LLC is the investment manager of Armistice Capital Master Fund Ltd., the direct holder of the Shares, and pursuant to an Investment Management Agreement, Armistice Capital exercises voting and investment power over the securities of the Issuer held by the Master Fund and thus may be deemed to beneficially own the securities of the Issuer held by the Master Fund.
• Mr. Boyd, as the managing member of Armistice Capital, may be deemed to beneficially own the securities of the Issuer held by the Master Fund.
• The Master Fund specifically disclaims beneficial ownership of the securities of the Issuer directly held by it by virtue of its inability to vote or dispose of such securities as a result of its Investment Management Agreement with Armistice Capital.

Industry Context

StockSavvy.ai notes that this filing reflects a common practice for institutional investors to disclose significant stakes in publicly traded companies. Li-Cycle operates in the rapidly evolving and critical sector of battery recycling, which is attracting substantial investor interest.

Stakeholder Impact

• Shareholders: May view the increased institutional ownership as a positive sign, potentially leading to greater scrutiny and engagement with management.
• Management: May face increased attention from a significant shareholder regarding company strategy and performance.

Next Steps

• Armistice Capital, LLC and Steven Boyd will continue to hold their beneficial ownership of Li-Cycle Holdings Corp. common stock.
• Future amendments to this Schedule 13G will be filed if there are changes in beneficial ownership or other reportable events.

Key Dates

Keywords

Li-Cycle Holdings Corp., Schedule 13G, Armistice Capital, Steven Boyd, Beneficial Ownership, Institutional Investor, Common Stock, Investment Management