8-K: Li-Cycle Completes 1-for-8 Share Consolidation to Regain NYSE Compliance

Li-Cycle Holdings Corp. has completed a share consolidation at a ratio of one post-consolidation share for every eight pre-consolidation shares, effective June 3, 2024, to potentially increase its share price and regain compliance with NYSE listing standards.

Summary

• Li-Cycle Holdings Corp. has completed a share consolidation, effective June 3, 2024.
• The consolidation ratio was set at one post-consolidation share for every eight pre-consolidation shares.
• Prior to the consolidation, the company had 179,966,035 shares outstanding.
• Following the consolidation, the company has approximately 22,495,754 shares outstanding.
• Fractional shares resulting from the consolidation were cancelled for no consideration.
• The share consolidation does not affect the total number of authorized shares or modify any voting rights.
• The company's shares are expected to begin trading on the NYSE on a post-consolidation basis on June 4, 2024, under the existing symbol LICY.
• The new CUSIP identifier for the shares is 50202P204.
• The exercise or conversion price and the number of shares issuable under outstanding securities will be proportionally adjusted.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The share consolidation is a necessary step to address a low share price and maintain listing compliance, but it does not guarantee future success. The company still faces significant risks and uncertainties.

Positives

• The share consolidation is a step towards regaining compliance with NYSE listing standards.
• The consolidation is expected to increase the trading price of the shares.
• The company has taken action to address the issue of low share price.

Negatives

• Shareholders with fractional shares received no compensation as these were cancelled.
• The share consolidation reduces the number of shares held by investors.

Risks

• There is no guarantee that the share consolidation will result in a sustained increase in the share price.
• The company still faces the risk of not meeting the NYSE's continued listing standards.
• The company's future performance is subject to various risks and uncertainties as detailed in their filings.

Future Outlook

The company expects the share price to increase as a result of the consolidation and to regain compliance with NYSE listing standards. The company's future performance is subject to various risks and uncertainties.

Management Comments

• The share consolidation has been implemented as a way to potentially increase the trading price of Shares so as to regain compliance with the NYSE minimum share price criteria set forth in Section 802.01C of the NYSE Listed Company Manual.

Industry Context

Share consolidations are a common strategy for companies facing low share prices and potential delisting from major exchanges. This action is aimed at improving the company's standing with investors and the market.

Comparison to Industry Standards

• Share consolidations are a common practice for companies that have experienced a significant decline in their share price, similar to other companies in the resource and technology sectors facing listing compliance issues.
• Other companies in similar situations have also used reverse stock splits to increase their share price and maintain their listing on major exchanges.
• The 1-for-8 ratio is a relatively common ratio for share consolidations, although the specific ratio is determined by the company's board based on their specific circumstances.

Stakeholder Impact

• Shareholders will see a reduction in the number of shares they hold, but the value of their holdings should remain relatively the same.
• The share consolidation is intended to benefit shareholders by increasing the share price and maintaining the company's listing on the NYSE.
• The company's employees and other stakeholders may be impacted by the company's overall financial performance and ability to execute its business plan.

Next Steps

• The company's shares will begin trading on the NYSE on a post-consolidation basis on June 4, 2024.
• The company will continue to monitor its share price and compliance with NYSE listing standards.

Key Dates

Keywords

share consolidation, stock split, NYSE compliance, LICY, share price, lithium-ion battery recycling, capital markets