Form 4: Li-Cycle Holdings Corp. Director Mark Wellings Reports Changes in Beneficial Ownership

Director Mark Wellings reports acquisition and disposal of Li-Cycle Holdings Corp. common shares and restricted stock units (RSUs).

Summary

• On August 29, 2024, Mark Wellings, a director of Li-Cycle Holdings Corp., reported changes in his beneficial ownership of the company's securities.
• Wellings acquired 59,628 restricted stock units (RSUs) at a price of $0, representing compensation under the 2024 Director Compensation Program, vesting fully on May 23, 2025.
• These RSUs were granted in lieu of cash compensation and are based on a share price of $1.48 on August 29, 2024.
• Wellings also disposed of 28,779 common shares held indirectly through ZCR Corp., of which he is the sole owner.
• Following these transactions, Wellings directly owns 104,658 securities, including 98,080 RSUs awarded under the 2021 Incentive Plan.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it primarily reports transactions. The disposal of shares could be seen as slightly negative, but the acquisition of RSUs balances this out.

Positives

• The acquisition of RSUs demonstrates a continued alignment of the director's interests with the long-term performance of the company.
• The RSUs were granted in lieu of cash compensation, which may help the company conserve cash.

Negatives

• The disposal of 28,779 common shares, even if indirect, could be perceived negatively by the market.

Risks

• The vesting of the RSUs is contingent upon continued service, creating a potential risk if the director were to leave the company before the vesting date.
• The value of the RSUs is subject to the market price of Li-Cycle Holdings Corp. common shares, which can fluctuate.

Industry Context

Form 4 filings are a standard part of regulatory compliance for corporate insiders and provide transparency into their transactions in the company's securities. This filing is specific to Li-Cycle Holdings Corp. and its director's transactions.

Comparison to Industry Standards

• Form 4 filings are a standard regulatory requirement for all publicly traded companies in the United States.
• The details disclosed in this filing are consistent with what is expected for insider transactions, similar to filings made by directors and officers at companies like Redwood Materials and Ascend Elements, which are also involved in the battery recycling and materials space.

Stakeholder Impact

• Shareholders may be interested in the director's transactions as an indicator of confidence in the company.
• The transactions have a minimal direct impact on employees, customers, suppliers, or creditors.

Key Dates