Mississauga, Ontario – Li-Cycle is raising funds for global expansion by going public on the New York Stock Exchange (NYSE) in a deal that values the battery recycler at US$1.7 billion, the company announced Tuesday.
The five-year-old private company has unveiled plans to merge with Peridot Acquisition Corp., an NYSE-listed special acquisition corporation (SPAC).
If approved by shareholders in both companies, the transaction will bring US$615-million into Li-Cycle. The business combination includes 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 $1.67 billion.
Upon closing, 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.”
Ajay Kochhar, co-founder and chief executive, said the proposed SPAC deal provides Li-Cycle with enough funds in one transaction to fund expansion–a move he said will help the company lock-down long-term contracts with customers.
The NYSE listing also allows the company to consider acquisitions as it expands.
The transaction is expected to close in the second quarter of 2021.