Li-Cycle Obtains Creditor Protection Under CCAA and Chapter 15

Li-Cycle Holdings Corp. (OTCQX: LICYF) (“Li-Cycle” or the “Company”), a leading global lithium-ion battery resource recovery company, today announced that the Company and its subsidiaries in North America (collectively, the “Li-Cycle Group”) have sought and obtained from the Ontario Superior Court of Justice (the “Court”) an order (the "Initial Order") providing them with creditor protection pursuant to Canada’s Companies' Creditors Arrangement Act (the "CCAA"). As part of the Initial Order, the Court ordered, among other things, a stay of proceedings in favor of the Li-Cycle Group for an initial period to and including May 22, 2025 (the "Stay Period") and the appointment of Alvarez & Marsal Canada Inc. as monitor of the Li-Cycle Group during the CCAA proceedings (in such capacity, the "Monitor") to assist the Company with its restructuring efforts and to report to the Court.

The Company’s U.S. subsidiaries (including Li-Cycle Inc., which owns the Company’s Spokes in Arizona, Alabama and New York, and Li-Cycle North America Hub, Inc., which owns the Company’s Rochester Hub project) have commenced proceedings before the United States Bankruptcy Court for the Southern District of New York (the “U.S. Bankruptcy Court”) under Chapter 15 of the U.S. Bankruptcy Code (“Chapter 15 Proceedings”) for recognition of the CCAA proceedings as a “foreign main proceeding.” The U.S. Bankruptcy Court has imposed a broad stay, for the benefit of the Company’s U.S. subsidiaries, barring the commencement of legal action, the enforcement of remedies, any act to obtain possession of their property in the United States or to exercise control over such property, and other similar conduct.

As part of the CCAA proceedings, the Li-Cycle Group expects to conduct a court-supervised sale and investment solicitation process (the “SISP”), which will be a continuation of its previously disclosed efforts to seek buyers for its business or its assets.

The Li-Cycle Group has entered into a term sheet with an affiliate of Glencore Canada Corporation (“Glencore”), the Company's largest secured creditor, for a DIP Facility. The DIP Facility consists of a credit facility of up to a maximum principal amount of $10.5 million which is expected to be used to finance Li-Cycle’s working capital requirements, including for the continued operation of its Germany Spoke, and to implement the restructuring contemplated in the CCAA proceedings, such as the pursuit of the SISP. The DIP Facility remains subject to approval by the CCAA Court.