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Li-Cycle Holdings Corp. will begin trading on the OTCQX Best Market to lower costs and maintain access to U.S. capital markets, its chief executive said, as its common shares are delisted on the New York Stock Exchange (NYSE).
The Toronto-based battery recycling and materials recovery company is now trading under LICYF on OTCQX Best Market. It represents the “premium tier” of New York City-based OTC Markets Group, which operates a marketplace for trading over-the-counter stocks. Such trading is not overseen by an exchange.
Li-Cycle’s operations or reporting under the U.S. Securities and Exchange Commission will not be changed, the company said in a release.
It was also informed today the NYSE has suspended trading and started to delist Li-Cycle’s common shares. The average closing price had fallen below $1 (all figures U.S. unless otherwise noted) over a consecutive 30 trading-day period and Li-Cycle had created a reverse stock split within the prior one-year period, which did not meet compliance with the stock exchange.
Li-Cycle does not expect to appeal the decision.
Li-Cycle’s president and CEO Ajay Kochhar said the company will “remain focused on providing value for all stakeholders and advancing our key priorities,” particularly securing a complete funding package for its Rochester Hub in New York. Another is meeting the conditions for the first advance of the $475-million loan it expects to receive from the U.S. Department of Energy (DoE).
Li-Cycle’s strains and U.S. plans
Li-Cycle, which operates a global network of battery recycling facilities, has a substantial presence in the U.S. It has three “Spoke” facilities in the U.S. where batteries are shredded into a metals-rich substance called black mass, and plans for a “Hub” in Rochester where the black mass is processed into battery-grade materials for reuse.
But the company faced several stumbling blocks that led to its stock going from a peak of $103.50 in October 2021 to single-digit values in late 2023. It paused construction on the Rochester Hub in October 2023 because of the escalating cost of construction, made major layoffs throughout 2024, and closed a Spoke in Kingston, Ont. to cut costs.
Li-Cycle took steps to recover with a $75-million investment from mining company Glencore, a boosted loan from the DoE to restart construction on the Rochester Hub, and resuming a feasibility study for a Hub in Italy.
An over-the-counter exchange such as the OTCQX is riskier for investors compared to an exchange, but allows a company like Li-Cycle to keep a door open into the U.S. equity market. It also plans to list its common shares on another market.
Kochhar said Li-Cycle can support the U.S. energy industry by producing critical minerals in the country, a point he raised in a blog post after the election of U.S. President Donald Trump, who has emphasized domestic energy production.
But the new administration ordered a pause on DoE spending and loans, which includes programs to fund clean energy projects like Li-Cycle's. The order is being challenged in court.
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