Lithium-ion battery recycling firm Li-Cycle Holdings has completed a $50 million aggregate investment in common shares of the company by LG Chem (LGC) and its subsidiary LG Energy Solution (LGES).
LGES and LGC have each subscribed for an equal number of common shares costing around $9.43 each to collectively hold 5,300,352, representing around 3% of the issued and outstanding common shares in the capital of the company.
The investment was split into two tranches: an initial tranche of 4,416,960 common shares, in the aggregate, at a price of $10 per share (for an aggregate initial tranche subscription price of approximately $44.2 million); and a second tranche of 883,392 common shares, in the aggregate, at a price of $6.60 per share, (for an aggregate second tranche subscription price of around $5.8 million).
Share’s deals background
In April, Li-Cycle signed two deals that would close the loop for lithium-ion battery materials recycling in North America.
One was a commercial deal with LG Energy Solution to recycle scrap material from electric-vehicle battery-cell production at Ultium Cells— the joint venture between General Motors and LG Energy Solution.
The second deal was with LG Chem and LG Energy Solution for the sale of nickel sulphate from Li Cycle’s recycling hub in New York.
These agreements paved the way for LG Chem and LGES to close the $50 million investment to buy common shares of Li-Cycle.