Lithium-ion battery recycler Li-Cycle is looking to secure funding to ‘meet its ‘obligations’ and ‘repay its liabilities’ as it fights to continue as a going concern.
The company has said it will need to ‘significantly modify’ or close operations and is undertaking a process to seek buyers for its business or its assets.
Li-Cycle has begun the process to suspend operations at its US recycling facilities in Arizona and Alabama. As a result, around 85 people will be furloughed at these facilities, and its workforce will be ‘reduced’ by around 32 people, primarily at its Toronto headquarters.
Operations at its German recycling facility are continuing. In February, the company partnered with an automotive OEM to recycle lithium-ion battery materials at the facility.
Last year, the company produced around 5,370 tonnes of black mass and equivalents.
In March, BEST reported that Glencore had tabled a solution involving a potential buy-out. A deal had not been made as of 5 May.
On 30 April, Li-Cycle announced it had received waivers from the holders of its convertible notes, namely Glencore Canada Corporation and Wood River Capital.
This allowed Li Cycle’s common shares to trade on the OTCQX as an eligible market under the terms of the convertible notes until May 5.
Li-Cycle was delisted by the New York Stock Exchange at the end of February, which meant the company had to start trading on OTCQX Best Market.
Leadership Updates
The Canadian firm has also announced a number of key changes to its management, including its founder and CEO stepping down.
Li-Cycle leadership changes are:
- President and CEO Ajay Kochhar stepped down from Li-Cycle’s Board of Directors on May 15. He will take a senior advisory role to support its sales process. Kochhar co-founded Li-Cycle in 2016.
- William Aziz has been appointed as Chief Restructuring Officer.
- Craig Cunningham has stepped down as Chief Financial Officer.
- Michelle Faysal has joined Li-Cycle as interim CFO.
