Li-Cycle’s CEO Ajay Kochhar sells shares worth $1,284

Published 05/02/2025, 01:22
Li-Cycle’s CEO Ajay Kochhar sells shares worth $1,284

Ajay Kochhar, President and CEO of Li-Cycle Holdings Corp. (NYSE:LICY), recently sold 1,266 common shares of the company at an average price of $1.015 per share, amounting to a total of $1,284. This transaction was part of an automatic sell to cover tax liabilities arising from the vesting of restricted stock units (RSUs). The sale comes as LICY trades near its 52-week low of $0.92, with the stock having declined about 68% over the past year. The company’s market capitalization currently stands at approximately $28 million.

Following this transaction, Kochhar holds 161,307 shares directly, which includes 139,829 RSUs awarded under the company’s 2021 Incentive Award Plan. Additionally, Kochhar has indirect control over 3,107,826 shares through 2829908 Delaware LLC, a Delaware limited liability company, as per an oral agreement. Kochhar holds the sole power to control the voting and disposition of these shares. According to InvestingPro analysis, Li-Cycle appears undervalued at current levels, despite facing challenges with high debt levels and rapid cash burn. InvestingPro subscribers have access to 20 additional key insights and a comprehensive Pro Research Report for LICY, among 1,400+ US stocks.

In other recent news, Li-Cycle Holdings Corp. has been actively restructuring its financial agreements and expanding its operations. The company has recently updated its terms with Glencore (OTC:GLNCY) Canada Corporation, amending and restating senior secured and unsecured convertible notes. These alterations aim to align the interests of Glencore note holders with common shareholders, introducing economic anti-dilution adjustments and conversion or exchange price adjustments for future common share issuances.

In addition, Li-Cycle has also secured an exclusive agreement with an unnamed luxury vehicle manufacturer to supply its German recycling facility with lithium-ion battery scrap. This move is part of the company’s ongoing strategy to bolster its supply chain for battery recycling operations.

On the financial front, Li-Cycle has set the pricing for its public offering in the United States, anticipating gross proceeds of approximately $15 million. The offering comprises 15 million units, each containing a 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.

Furthermore, the company has fortified its financial foundation by amending existing agreements and creating new financial obligations, primarily with Glencore Canada Corporation. This includes modifications to the Loan Arrangement and Reimbursement Agreement and the Sponsor Support Agreement, both connected to the company’s obligations to Glencore.

Finally, Li-Cycle has expanded its financial agreements with Glencore, following the fulfillment of a condition related to a U.S. Department of Energy loan. This expansion includes the provision of a first priority security interest in their assets to Glencore, including intellectual property and the equity interests of each subsidiary involved. These recent developments are part of Li-Cycle’s ongoing efforts to manage its financial obligations and strategic partnerships effectively.

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