A deal between Li-Cycle and investment firm Peridot Acquisition will see Li-Cycle go public on the New York Stock Exchange.
The combined company will be renamed Li-Cycle Holdings Corp. and will be listed on the New York Stock Exchange under the new ticker symbol LICY. It will be led by Ajay Kochhar, co-founder, president and CEO of Li-Cycle, and Tim Johnston, co-founder and executive chairman.
Founded in Toronto in 2016, Li-Cycle focuses on lithium-ion battery recycling.
The deal will provide $615 million in gross proceeds to the company, assuming no redemption by Peridot shareholders.
The boards of directors of each of Li-Cycle and Peridot have unanimously approved the transaction. The transaction will require the approval of the shareholders of both Li-Cycle and Peridot, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals.
The transaction is expected to close in the second quarter of 2021. All of Li-Cycle’s shareholders will roll their equity holdings into the new public company.
Li-Cycle has 40-plus commercial contracts that add up to a cumulative forecast EBITDA between 2021 and 2025 of $985 million. More than $300 million/year of revenue is to be generated from contracted off-take agreements with Traxys, both an investor and an existing partner.
Li-Cycle’s commercial battery supply customers include 14 of the largest global automotive and battery manufacturers.
“The capital raised in this transaction will fully fund our planned global growth,” Kochhar said. ,
“We are excited to partner with the Peridot team and enter the public markets.”
“Li-Cycle is at the forefront of one of the most crucial and under-penetrated markets in clean technology that is growing in lock-step with the electrification of mobility,” said Alan Levande, chairman and CEO of Peridot, who will join Li-Cycle’s board of directors.
“We believe Li-Cycle is a unique and compelling opportunity for investors looking to participate in the global energy transition. We are delighted to partner with Li-Cycle to advance and scale its disruptive technology.”