Form 4: Li-Cycle Holdings Director Acquires Shares Through Restricted Stock Units

Director Anthony Tse acquired 26,434 common shares of Li-Cycle Holdings Corp. through restricted stock units (RSUs) in lieu of cash compensation.

Summary

• Director Anthony Tse acquired 26,434 common shares of Li-Cycle Holdings Corp. through restricted stock units (RSUs).
• These RSUs were granted in lieu of cash compensation under the 2024 Director Compensation Program.
• The RSUs will vest on May 23, 2025, contingent on continued service.
• The number of RSUs was calculated based on a closing price of $2.08 per share on November 21, 2024.
• Mr. Tse also holds 66,858 previously awarded RSUs that are subject to time-vesting conditions.
• All share numbers have been adjusted to reflect a 1-for-8 share consolidation that occurred on June 3, 2024.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction of equity compensation for a director, which is generally viewed positively as it aligns interests with shareholders. There are no indications of any negative issues.

Positives

• The acquisition of shares by a director through RSUs demonstrates alignment of interests with shareholders.
• The vesting of RSUs is tied to continued service, incentivizing long-term commitment from the director.

Future Outlook

The newly granted RSUs will vest on May 23, 2025, subject to the director's continued service.

Industry Context

This is a standard practice for compensating directors in publicly traded companies, aligning their interests with shareholders through equity ownership.

Comparison to Industry Standards

• The use of RSUs for director compensation is a common practice among publicly listed companies, particularly in the technology and growth sectors.
• Many companies use similar vesting schedules, often tied to continued service, to ensure long-term commitment from directors.
• The valuation of RSUs based on the closing price on the grant date is a standard method used across the industry.
• Companies like Tesla, Rivian, and QuantumScape also use equity-based compensation for their directors, often with similar vesting periods.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term performance.
• The vesting of RSUs incentivizes the director to remain committed to the company.

Key Dates

Keywords

Li-Cycle Holdings, Director, Anthony Tse, Restricted Stock Units, RSUs, Share Consolidation, Equity Compensation, Insider Trading