Li-Cycle Holdings, the battery recycling firm, saw its shares soar 36% higher after it revealed it secured a US$75 million investment through a convertible note from mining and commodities giant Glencore.
Glencore PLC (LSE:GLEN) initially agreed to a US$200 million investment into Li-Cycle back in 2022, when it purchased a first convertible note.
The new note will mature in five years upon closing and can be converted into common shares at $0.53 each.
It was part of the Swiss group’s plan to supply both primary and recycled critical battery materials to customers throughout the world.
“We are pleased to secure an additional $75 million investment from Glencore, following Glencore’s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process," said Ajay Kochhar, boss of the Canadian company.
Back in November, Li-Cycle was forced to warn investors that it was evaluating financing and strategic options as it struggled with liquidity whilst building its battery recycling facility in New York.