Li-Cycle Holdings Corp. (LICY, Financials) a lithium-ion battery resource recovery firm, on Wednesday, revealed the pricing of its $15 million underwritten public offering. Following the statement, firm shares fell 32.57% to $1.02 at 1:51 p.m. GMT-5. Under usual closing circumstances, the offer is projected to conclude on Jan. 16, 2025.

With each of 15 million units costing $1.00, the offering comprises one common share and two warrants—Series A and Series B. The Series A expires eight months after issue and the Series B expires in five years; the warrants are exercisable at $1.00 per share.

The business says that the money raised from the sale would be used for basic corporate needs and working capital. Acting as the only book-running manager, Aegis Capital Corp. has 45-day option to buy more stocks to offset over-allotments.

Given the offering greatly increases the share base, the response of the stock market indicates investor worries about possible dilution. Following the price announcement, Li-Cycle's shares slumped significantly as trading volume surged.

The offer is carried out under a shelf registration statement already submitted to the U.S. Securities and Exchange Commission. Through the SEC's website or by calling Aegis Capital Corp., investors may obtain offering-related documentation including the prospectus.

Aiming to create a closed-loop supply chain for important battery materials and promote sustainable energy objectives, Li-Cycle, which was founded in 2016, recycles lithium-ion batteries using its own Spoke & Hub Technologies.