Li-Cycle Provides Business Update, Following Announcement of $75 Million Investment from Glencore - Seite 2

Cash Preservation Plan

As part of the pause in construction of the Rochester Hub project, on November 1, 2023, Li-Cycle implemented a Cash Preservation Plan (“CPP”) to reduce expenses and slow cash outflows, while exploring both financing options and strategic alternatives to increase liquidity. As a result of the CPP, the Company has taken steps to significantly reduce its workforce and curtail other non-operational spending.

Additionally, the Company has slowed operations at its Spoke network, including pausing operations at its Ontario Spoke, slowing operations at its New York, Arizona and Alabama Spokes on an ongoing basis, and is currently re-evaluating the Company’s strategy for its North American Spokes, which may include further pauses or slowdowns. In 2023, Li-Cycle’s Spokes produced 6,825 tonnes of black mass, which exceeded the top end of its revised annual guidance.

Based on the go-forward strategic objectives and the CPP, Li-Cycle expects to further right-size and right-shape its organization. The Company will continue to evaluate other measures to reduce costs and expects the results from the CPP to deliver lower cash outflows. As of December 31, 2023 and March 15, 2024, Li-Cycle had cash and cash equivalents on hand of approximately $71 million and approximately $35 million respectively, excluding restricted cash of approximately $10 million. This excludes expected gross proceeds from the Glencore financing of $75 million which is expected to close on or about March 25, 2024. Based on cash on hand as of March 15, 2024 and the expected gross proceeds from the Glencore financing, pro forma cash is estimated to be approximately $110 million, excluding restricted cash of approximately $10 million.

Rochester Hub Project

On October 23, 2023, the Company announced that it was pausing construction on the Rochester Hub project, pending completion of a comprehensive review of the project’s go-forward strategy. As of December 31, 2023, the Company incurred total costs of approximately $567 million on the project, comprised of total cash spend of approximately $452 million, including $97 million of spend for the construction of process buildings and warehouse and costs incurred but not yet paid of approximately $115 million.