Li-Cycle adopts limited duration shareholder rights plan

Li-Cycle Holdings announced that its Board of Directors has adopted a limited duration shareholder rights plan. The Rights Plan is intended to protect the long-term interests of Li-Cycle and Li-Cycle’s shareholders and to enable them to realize the full potential value of their investment in the Company. The Rights Plan is designed to protect against unequal treatment of the Company’s shareholders and reduce the likelihood that any person or group will gain control of, or exert significant influence over, Li-Cycle, including through open market accumulations, without appropriately compensating Li-Cycle’s shareholders for control. The Rights Plan also helps ensure that the Board has sufficient time to make informed, deliberate decisions and take actions that are in the best interests of Li-Cycle. The Rights Plan applies equally to all current and future shareholders of Li-Cycle. The Rights Plan is not intended to prevent or interfere with any action with respect to Li-Cycle that the Board determines to be in the best interests of the Company. The Rights Plan will operate similarly to rights plans adopted by other companies publicly listed in the United States. Pursuant to the Rights Plan, Li-Cycle will issue one right for each common share of the company outstanding as of the close of business on November 10, 2023. While the Rights Plan is effective immediately, the rights generally will become exercisable only if an applicable person or group acquires beneficial ownership of 20% or more of Li-Cycle’s outstanding common shares in a transaction not approved by the Board. In that situation, each holder of a right will have the right to purchase, for the purchase price of $12.50, a number of common shares of the company having a then-current market value of twice the purchase price. In addition, at any time after an applicable person or group acquires 20% or more of the company’s common shares, the Board may, at its option, deem all or part of the rights exercised at a ratio of one common share for each outstanding right for a nil purchase price per right. The Rights Plan has a 364-day term and will expire on October 30, 2024.