Form 4: Li-Cycle Holdings Corp. Executive Sells Shares to Cover Tax Obligations

Dawei Li, Chief Commercial Officer of Li-Cycle Holdings Corp., sold a small portion of common shares to cover tax liabilities arising from the vesting of restricted stock units.

Summary

• On January 27, 2025, Dawei Li, the Chief Commercial Officer of Li-Cycle Holdings Corp., sold 276 common shares at a price of $1.075 per share.
• The sale was executed to cover tax obligations related to the vesting and settlement of restricted stock units (RSUs).
• Following the transaction, Li directly owns 62,379 common shares, which includes 54,794 RSUs granted under the company's 2021 Incentive Award Plan.
• Each RSU represents the right to receive one common share of Li-Cycle Holdings Corp., contingent upon time-vesting conditions and continued service.
• The reported holdings have been adjusted to reflect a share consolidation on June 3, 2024, at a ratio of one post-consolidation share for every eight pre-consolidation shares, correcting an arithmetic error in a prior filing.

Sentiment

Score: 6

Explanation: The document reflects a routine transaction (executive share sale for tax purposes) and a correction of a previous filing. It doesn't inherently indicate positive or negative sentiment, hence a neutral score.

Industry Context

Executive share sales are a common occurrence, often related to tax obligations from equity compensation. The sale itself is small and unlikely to have a significant impact on the overall market capitalization of Li-Cycle.

Comparison to Industry Standards

• Executive compensation practices, including the use of RSUs, are standard across publicly traded companies.
• The vesting schedules and tax implications are generally similar to those observed in comparable companies in the cleantech and battery recycling sectors.
• Executive share sales to cover tax obligations are a routine part of equity compensation and do not necessarily indicate a negative outlook on the company's future.

Key Dates