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

Christopher J. Biederman, Chief Technical Officer of Li-Cycle Holdings Corp., sold 905 common shares to cover tax liabilities arising from the vesting of restricted stock units.

Summary

• On August 13, 2024, Christopher J. Biederman, the Chief Technical Officer of Li-Cycle Holdings Corp., sold 905 common shares of the company.
• The sale was executed at a price of $2.5 per share.
• This transaction was conducted to cover the tax liability resulting from the vesting and settlement of restricted stock units (RSUs).
• Following the transaction, Biederman still beneficially owns 90,602 common shares, which includes 2,613 RSUs.
• These RSUs represent the contingent right to receive one common share each, subject to time-vesting conditions and continued service.
• The reported securities numbers 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.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction (sale of shares to cover taxes) and doesn't inherently indicate positive or negative sentiment regarding the company's prospects.

Industry Context

Insider sales, particularly those related to covering tax obligations on vested equity, are common. The impact on the stock price is usually minimal unless the sale is substantial or indicative of a broader trend among insiders.

Comparison to Industry Standards

• Executive compensation often includes stock options and RSUs, which vest over time.
• Upon vesting, these instruments are subject to income tax, and executives commonly sell a portion of the underlying shares to cover these taxes.
• This practice is widespread across publicly traded companies and is not unique to Li-Cycle Holdings Corp.

Stakeholder Impact

• The sale of shares by an executive could have a minor impact on shareholder sentiment, but is unlikely to be significant given the reason for the sale (tax obligations).

Key Dates