Li-Cycle Holdings Corp. (LICY) stock soared 8.64% in the current-market trading session at the price of $11.95 following the announcement of a $100 million investment from Koch Strategic Platforms (KSP). Li-Cycle delivers a customer-centric solution for lithium-ion batteries by leveraging its innovative Spoke & Hub Technologies. Lithium-ion batteries are automotive and have consumer electronics and other industrial and domestic applications.
Investment of $100 Million from KSP
On 29th September 2021, LICY published that Koch Strategic Platforms (KSP) will invest $100 million through the purchase of a convertible note. This investment intends to support LICY’s rapidly increasing growth opportunities. As per the terms of the investment, KSP will purchase a convertible note in an aggregate principal amount of $100 million with an initial conversion price of $13.43 per common share. The investment is subject to customary anti-dilution conditions.
CEO of LICY, Ajay Kochhar, commented that this investment would further accelerate the development of lithium-ion battery recycling footprint. Recycling and recovery of lithium-ion rechargeable batteries are crucial for the electrification of transportation. President of KSP, David Park, remarked that LICY is a leading industry with a strong portfolio of strategic partnerships and proven innovative technology. They are confident in the company’s cutting-edge technology and expertise to deliver long-term value to its stakeholders.
LICY Reported Third Quarter 2021 Financial Results
On 9th September 2021, LICY published an earnings report for its third quarter ended 31st July 2021. Total revenues increased 840% to $1.7 million in the third quarter of 2021. Total revenues were $0.2 million in the same quarter ended 31st July 2020. The increased revenue in 2021 resulted from higher recycling services and product sales.
LICY reported net loss of approximately $6.9 million for the third quarter ended 31st July 2021. Net loss was $1.8 million in the same quarter ended 31st July 2020. For the third quarter of 2021, operating expenses improved to $7.9 million. Operating expenses were $1.9 million during the third quarter of the previous year. LICY reported an Adjusted EBITDA (loss) of $(5.2) million in the third quarter of 2021, compared to $(1.3) million for the same quarter of 2020.
Cash flows from operating activities were $5.2 million in the third quarter ended 31sh July 2021, compared to $2.2 million during the same quarter of 2020. As of 31st July 2021, cash, cash equivalents, and marketable securities were $2.4 million. The shares outstanding of common shares were 163,179,553, as of 31st August 2021.
