Li-Cycle Holdings Corp, the Canadian lithium battery recycler, has been served written notice by the New York Stock Exchange that it breached Section 802.01C of the NYSE’s continued listing standards. The average closing price of Li-Cycle’s shares was less than $1.00 over a consecutive 30 trading-day period.
Li-Cycle said it told the NYSE it intends to fix this and is considering all available options. NYSE rules give Li-Cycle six months to bring its average closing share price to at least $1.00 over the prior 30 trading-day period. On 4 January, its shares were trading at $0.55. A year ago, the share was changing hands for $6.
The company is facing a cash crunch over surging costs at its Rochester Hub recycling plant in New York. Li-Cycle’s President and CEO Ajay Kochhar said in its third quarter trading statement in November the company had analysed options for completing the plant and was taking steps to conserve cash. The cost of the existing scope is expected to significantly exceed the previously disclosed budget of $560 million, it said.
It is supposed to be the first commercial hydrometallurgical battery material recovery facility in North America.
It is also talking to the Department of Energy to satisfy conditions to close a $375 million loan commitment.
In December, Swiss commodities company Glencore filed regulatory documents in the US and Canada relating to its discussions regarding Li-Cycle and its subsidiaries in light of the ongoing evaluation of financing and strategic alternatives. No further comment has been made.
We reported in October that Li-Cycle announced a pause on all construction work on the recycling hub in Rochester due to escalating construction costs. The Q3 trading report stated operating expenses increased to $144.8 million from $41.9 million in the same period of 2022. This was driven primarily by the non-cash Rochester Hub impairment charge of $96.5 million, higher personnel costs, plant facility expenses and R&D expenses.