Li-cycle Company’s Recent Situation
LICYF delisted from the NYSE
Li-cycle (hereinafter referred to as “LICYF”) has recently experienced a sharp decline. It was even delisted from the NYSE.
This has been quite painful for those who invested in the company, as the delisting process was not smooth.
To prevent the stock from becoming a penny stock trading below $1, LICY conducted a stock consolidation in June 2024.
Despite this, the stock price continued to stagnate, and when it reached the $1 offering price, the 30-day average price per share fell below $1 again, leading to an immediate delisting under the NYSE’s enhanced delisting criteria.
The company’s strange response to the stock price decline
The company’s unusual response to the stock price decline.
It is unclear whether the company saw no benefit in maintaining its NYSE listing, but given that it was a company that went public through a reverse merger, maintaining the listing would have been better for maintaining investor trust. However, it appears that the CEO either overlooked this point or intentionally sought to delist the company.
Alternatively, the company may have been unaware of the strengthened NYSE regulations set to take effect in 2025. If this was due to a lack of understanding of the regulations, it could be seen as evidence of managerial incompetence or financial department ineptitude.
LICYF’s current situation
Cash Liquidity Deterioration
LICYF has disclosed in its 8-K report that its cash liquidity is nearly depleted and there are no additional sources of cash.
Glencore’s Acquisition Proposal for LICYF
Glencore, which was the largest investor, has expressed its intention to acquire LICYF. They sent a letter urging the initiation of the acquisition process, mentioning various procedures and urging the commencement of the process. As part of the process, several warrants were canceled and were all accepted on April 3.
Three options for Glencore to acquire Li-cycle
The first method is a complete merger.
- High Ownership Stake
Through its convertible debt, Glencore already holds conversion rights on enough notes to gain majority control (estimated ~66% fully diluted as of late 2024).
This gives Glencore significant influence over corporate decisions, including potential approval of a takeover. - Strategic Leverage via Debt
Glencore has secured first-priority liens on nearly all of Li-Cycle’s assets, including intellectual property and equity pledges from subsidiaries.
This means if Li-Cycle defaults, Glencore can take over the company or force a restructuring on its terms. - Undervalued Stock
LICYF is currently trading around $0.40, a massive discount from its IPO price and earlier valuation.
A buyout at a modest premium (e.g., $0.60–$0.70/share) could appear attractive to shareholders and still be cheap for Glencore. - Takeover Talks Are Already Happening
In March 2025, Glencore officially approached Li-Cycle with interest in a potential acquisition.
A special committee has been formed to evaluate this proposal — indicating the company is seriously considering it. - OTCQX Status Makes Delisting Easier
Since LICYF is no longer on a major exchange, delisting from OTCQX is procedurally easier and subject to fewer regulatory hurdles. - Conclusion of the complete merger scenario
Glencore may offer to buy out all minority shareholders at a moderate premium.
If accepted, Li-Cycle would likely be taken private, with Glencore assuming full control.
Delisting would follow soon after — removing the stock from public trading entirely.
Glencore may consider relisting LICYF to protect its $300 million investment in the company.
From an ROI perspective, delisting LICYF and conducting a full merger would make it difficult to recover $300 million or more in investment profits. And Glencore’s move alone will enable LICYF to recover from this crisis in no time. This is because it is a proposal that will dispel market concerns about LICYF’s liquidity. Let’s look at the pros and cons of delisting and relisting.
If Glencore fully acquires and delists Li-Cycle:
They lock themselves into a private company with uncertain revenue (Rochester Hub isn’t operational yet).
They would need to fund future operations themselves.
It’s harder to monetize their investment unless they:
Later relist privately via IPO or sell to another strategic buyer
Relisting Benefits to Glencore
If Glencore keeps Li-Cycle public and relists on NYSE/NASDAQ, it could:
Unlock higher valuation multiples through public market optimism (especially in clean tech or EV sectors).
Liquidate its equity more easily over time (or raise more capital).
Attract institutional investors again, boosting stock demand and valuation.
Increase market visibility for Li-Cycle and Glencore’s battery recycling strategy.
Strategic Possibility: Hybrid Play
Therefore, it is most reasonable for Glencore to adopt a strategy that allows it to move in both directions.
Take majority control, restructure and stabilize Li-Cycle
Relist the company (e.g., after the Rochester Hub is online and the DOE loan is deployed)
Then gradually reduce its stake or bring in strategic partners
This strategy would maximize ROI without needing to delist or cash out at a loss.
While delisting gives Glencore full control, relisting is likely a smarter financial play if the goal is to recover or grow its $300M investment.
There is a strong possibility that Glencore will reluctantly keep Li-Cycle public (or relist it) to maximize returns, especially once the company is financially and operationally stable.
Situation Analysis Scenario
✅ What Glencore Has:
Control or near-control of Li-Cycle through convertible debt
First-priority security interests in key assets and IP
A position to shape the company’s future (operationally and financially)
A long-term interest in battery materials, recycling, and supply chains
❌ What Glencore Doesn’t Want:
To realize a massive paper loss on a ~$275M investment
To get stuck with a capital-hungry private company if the Rochester Hub stalls
To deal with illiquidity if it delists and holds everything privately
Strategic Choices
1. Full Buyout + Delisting
Pros : Full control, simplify decision-making
Cons : Hard to monetize investment, long ROI horizon, higher capital risk
2. Restructure & Relist
Pros : ROI recovery via public markets, more exit options, future upside
Cons : Takes time and effort to stabilize ops
3. Sell Stake or Merge with Another Strategic Buyer
Pros : Partial ROI now, lower risk
Cons : Loss of control, hard to find the right buyer
4. Liquidate or Force Bankruptcy
Pros : Get secured debt value (if assets are valuable)
Cons : Worst-case optics, likely value destruction
Logical Choice
2. Restructure, relist, and extract value gradually.
Why?
Glencore’s core strength is resource supply chains — not running battery startups.
They don’t need to own 100% — they need to protect and monetize their investment.
A successful relisting could easily bring Glencore’s ROI into positive territory, as shown in the earlier simulations.
It also preserves their strategic stake in North America’s battery recycling ecosystem.
Likely Strategy
Stabilize operations (Rochester Hub, financing, staffing)
Negotiate extensions/waivers as needed for compliance
Assist in relisting process (target late 2025–2026)
Slowly convert debt to equity, sell down over time — ideally at $1–$5/share
What will Glencore’s decision be?
While it is impossible to predict the outcome, Glencore’s acquisition proposal suggests that they highly value the company’s technology. It is possible that LICYF’s CEO may be replaced, but we will have to wait and see how Glencore proceeds with the acquisition.
Positive possibilities resulting from policies
Currently, US President Donald Trump may find himself in a difficult situation due to China’s restrictions on rare earth exports. At times like this, developing technologies to mine rare earths and other resources through recycling within the US could be seen as a kind of insurance policy. I think this company’s value may suddenly increase. Of course, overcoming the company’s immediate liquidity crisis is the priority.
If there are any further updates, we will post a new article.