Li-Cycle Holdings Corp. ("Li-Cycle" or "the Company"), a provider of lithium-ion battery resource recovery and lithium-ion battery recycler in North America, has announced that it has completed its previously announced business combination with Peridot Acquisition Corp. (“Peridot”).
The ticker symbols for the common stock and warrants of Peridot will change from “PDAC” and “PDAC.WS” to “LICY” and “LICY.WS”, respectively, and will begin trading on the New York Stock Exchange on August 11, 2021. The transaction was approved at an extraordinary general meeting of Peridot shareholders on August 5, 2021 and was unanimously approved by Peridot’s Board of Directors.
Ajay Kochhar, co-founder and Chief Executive Officer of Li-Cycle, said that the consummation of their business combination with Peridot marks a significant milestone for Li-Cycle. Peridot’s support of Li-Cycle’s mission to close the battery supply chain loop has been instrumental, and Li-Cycle looks forward to the ongoing partnership with their team. Li-Cycle is well-positioned to benefit from macroeconomic tailwinds as they scale their efficient and proven commercial lithium-ion recycling technology to grow in lockstep with their customers. As the electric vehicle revolution continues to ramp up, they believe their technology will be critical for supporting the growth of e-mobility globally, while ensuring sustainability and resource efficiency.
Tim Johnston, co-founder and Executive Chairman of Li-Cycle, said that the transaction with Peridot has provided them with the funding to capitalize on significant growth opportunities, advance their breakthrough commercial technology, and build lithium-ion recycling facilities across the globe. Li-Cycles’s solution transforms material treated as waste into considerable value via a truly fit-for-purpose pathway, providing the essential building blocks for batteries that are in critical demand. Sustainable lithium-ion battery recycling is imperative today and they believe that further execution of their vision will ultimately contribute to more affordable products for the end consumer.
Alan Levande, the former Chairman and Chief Executive Officer of Peridot and now a Non-Executive Director of the Board of Directors of Li-Cycle, said that Li-Cycle’s innovative business model, exceptional management team, and proven, disruptive technology provides the company with a strong competitive moat that is poised to benefit from global electrification. He also said that since announcing the transaction, the Li-Cycle team has demonstrated excellent stewardship – announcing foundational commercial agreements, bolstering the leadership team with strategic hires, strengthening the Company’s IP, and importantly, furthering progress on building out the Company’s Spoke and Hub model. He added that he is excited to see its future successes amplified in the public markets.
Transaction Overview
The business combination implies a pre-money equity valuation for Li-Cycle of $975 million and, when combined with the transaction proceeds, represents a combined company pro forma equity value of $1.55 billion. The transaction provided approximately $580 million in gross proceeds to the Company, including a $315 million fully committed, upsized common stock PIPE at $10.00 per share from investors that include Neuberger Berman Funds, Franklin Templeton and Mubadala Capital, as well as Peridot sponsor Carnelian Energy Capital, existing Li-Cycle investors including Moore Strategic Ventures, and global marketing and strategic off-take partner Traxys.
Li-Cycle’s existing senior management team continues to lead the now combined company, including Ajay Kochhar, Tim Johnston, Bruce MacInnis (Chief Financial Officer), Kunal Phalpher (Chief Commercial Officer), and Chris Biederman (Chief Technology Officer).
Li-Cycle’s Board of Directors is comprised of seven members, four of whom are “independent directors” as defined in the NYSE listing standards and applicable U.S. Securities and Exchange Commission (“SEC”) rules. The Board of Directors is led by Executive Chair Tim Johnston (Li-Cycle) and also includes Ajay Kochhar (Li-Cycle) and Alan Levande (Peridot).
A more detailed description of the transaction can be found in the prospectus filed by the Company with the SEC on July 15, 2021.
