Li-Cycle Holdings Corp. (NYSE: LICY) stock soared over 36% on Wednesday, maintaining its momentum following the announcement that the company had agreed to issue a senior secured convertible note worth $75 million to a Glencore affiliate.
Li-Cycle (LICY) revealed on Tuesday that it had secured a $75 million investment from Glencore plc via a senior secured convertible note agreement.
The investment aims to improve Li-Cycle’s liquidity while it undergoes a strategic review process. The company is evaluating its approach to the halted Rochester Hub project, exploring various product mixes and construction strategies. After careful consideration, Li-Cycle opted for Glencore’s proposal.
Glencore will gain increased representation on Li-Cycle’s board, according to an agreement.
The decision to pause construction at the Rochester Hub, announced in October, was primarily due to rising construction costs and financing challenges. Initial estimates placed the total project expenses in the range of $850 million to $1 billion.
Li-Cycle will reveal its full-year 2023 financial results on March 15.
Li-Cycle (NYSE: LICY) Stock Movement
LICY stock surged 36.25% to close at $0.80 on Wednesday. The traders had exchanged hands with 75,398,918 (75.39 million) shares compared to the average daily trading volume of 4.27 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
