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Highlights
- Li-Cycle Holdings (NYSE:LICY) moves to OTCQX Best Market under ticker 'LICYF'.
- The transition follows NYSE suspension due to share price falling below $1.00.
- Company continues SEC reporting obligations and aims for future market listing.
Li-Cycle Holdings (NYSE:LICY), a leader in the recycling of lithium-ion batteries, announced a significant transition in its market listing. Starting February 27, 2025, Li-Cycle's stock will begin trading on the OTCQX® Best Market under the new ticker symbol 'LICYF'. This move comes in response to the NYSE's suspension of Li-Cycle’s shares, following a period where its share price averaged below $1.00 for over 30 trading days. The price drop was influenced by a reverse stock split that did not bring the price back above the required threshold for NYSE listing standards.
The decision to transition to the OTCQX Best Market allows Li-Cycle to maintain efficient access to U.S. capital markets while reducing its operational costs, a necessary adjustment due to the challenges posed by its NYSE delisting. The company has taken steps to secure its financial footing during this transition by securing waivers from its convertible debt holders—Glencore Canada and Wood River Capital. These waivers, which extend until April 30, 2025, provide the company with additional time to meet obligations tied to its debt financing.
Despite this change in market listing, Li-Cycle will continue to meet all SEC reporting requirements, ensuring transparency and continued access to financial information for investors. Additionally, the company remains committed to meeting the conditions for the first advance under its U.S. Department of Energy (DOE) loan facility, a crucial funding source for the development of its Rochester Hub project. Securing the full funding for this project remains a central goal for Li-Cycle, as the company works to expand its ability to recycle lithium-ion batteries efficiently.
Li-Cycle’s shift to the OTCQX market reflects the company's strategic adjustment in light of the challenges faced in the stock market. The OTCQX Best Market is known for its high standards of financial transparency and investor protection, which will provide Li-Cycle with a solid platform for continued growth while lowering the costs associated with maintaining its listing on a larger exchange like the NYSE.
While the transition to the OTCQX Best Market provides Li-Cycle with more cost-effective market access, there are challenges to overcome. The company's shares were suspended from trading on the NYSE due to their price falling below the $1.00 threshold. Furthermore, the reverse stock split conducted in the previous year did not resolve this issue, necessitating the market shift to OTCQX. As part of its ongoing financial strategy, Li-Cycle is also focused on securing the full funding package for its Rochester Hub project, which is essential to the company’s long-term growth and innovation in battery recycling. Additionally, meeting the conditions for the first DOE loan advance remains a key objective for the company.
