Li-Cycle CTO Biederman sells $565 in common shares

Published 30/01/2025, 00:40
Li-Cycle CTO Biederman sells $565 in common shares

Christopher J. Biederman, the Chief Technology Officer of Li-Cycle Holdings Corp. (NYSE:LICY), has reported a sale of company stock. According to a recent filing, Biederman sold 526 common shares at a price of $1.075 each, totaling approximately $565. This transaction was conducted to cover tax liabilities arising from the vesting of restricted stock units (RSUs). The sale comes as Li-Cycle’s stock trades near its 52-week low of $0.92, having declined 75% over the past year. According to InvestingPro analysis, the company currently shows signs of undervaluation, with a price-to-book ratio of just 0.09.

Following this transaction, Biederman holds 90,076 shares, which include 73,004 RSUs awarded under the company’s 2021 Incentive Award Plan. These RSUs are subject to time-vesting conditions and the reporting person’s continued service. Notably, the number of RSUs held has been adjusted to reflect a share consolidation that occurred on June 3, 2024, where one post-consolidation share was issued for every eight pre-consolidation shares. With a market capitalization of just $28.61 million, Li-Cycle faces significant challenges, as highlighted by 18 key financial indicators available on InvestingPro.

In other recent news, Li-Cycle Holdings Corp. reported significant advancements in its financial structure and revenue growth. The company announced a 79% surge in Q3 2024 revenue to $8.4 million, mainly driven by increased recycling service revenue and favorable metal prices. Concurrently, Li-Cycle secured a $475 million loan agreement with the U.S. Department of Energy for the construction of the Rochester Hub project in New York.

In a move to bolster its financial foundation, Li-Cycle expanded its agreements with Glencore (OTC:GLNCY) Canada Corporation, a key investor. This included a Note Guaranty, granting Glencore a first priority security interest in their assets. As a result of these financial adjustments, Glencore’s pro forma fully-diluted ownership in Li-Cycle increased to approximately 66%.

Li-Cycle also announced the pricing for its public offering in the United States, with anticipated gross proceeds of approximately $15 million. The offering comprises 15 million units, each containing one common share or a pre-funded warrant to purchase one common share, one Series A Warrant, and one Series B Warrant to purchase additional common shares.

These are among the recent developments in the company’s strategic efforts to manage its financial obligations and partnerships. Analysts have indicated that Li-Cycle anticipates a significant increase in recycling materials by 2030, driven by the rising number of electric vehicles and manufacturing scrap. This aligns with the projected growth of the electric vehicle market in North America at a compound annual growth rate of approximately 20% from 2025 to 2030.

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