Common stock and additional paid-in capital (Tables)

12 Months Ended

Dec. 31, 2023


(in millions)	Number of shares outstanding*	Amount
Common shares and additional paid-in capital outstanding as at November 1, 2020	83.4	$	16.3
Issuance of shares – Series C private placement (i)	11.2	21.6
Issuance of shares for non-cash costs	0.5	—
Issuance of shares through Business Combination (ii)	65.7	477.0
Settlement of RSUs	0.4	0.8
Exercise of stock options	2.1	0.2
RSUs expense	—	0.7
Stock-based compensation - options	—	2.7
Common shares and additional paid-in capital outstanding as at October 31, 2021	163.3	519.3
Settlement of RSUs	0.3	—
Exercise of stock options	1.4	—
Exercise of warrants	5.7	46.0
Issuance of shares to LGES and LGC (iii)	5.3	49.7
Stock-based compensation - RSUs	—	11.5
Stock-based compensation - options	—	6.6
Common shares and additional paid-in capital outstanding as at October 31, 2022	176.0	633.1
Settlement of RSUs	—	—
Exercise of stock options	0.1	—
Stock-based compensation - RSUs	—	1.6
Stock-based compensation - options	—	0.6
Common shares and additional paid-in capital outstanding as at December 31, 2022	176.1	635.3
Settlement of RSUs	0.8	—
Exercise of stock options	1.3	—
Stock-based compensation - RSUs	—	9.8
Stock-based compensation - options	—	3.6
Payment to the holders of non-controlling interest in subsidiary	—	(0.4)
Common shares and additional paid-in capital outstanding as at December 31, 2023	178.2	$	648.3

*The number of Li-Cycle Corp. common shares and Class A preferred shares on the consolidated statements of equity have been recast by the Business Combination exchange ratio of 1:39.91 for periods prior to the completion of the Business Combination on August 10, 2021.

(i)On November 13, 2020, Li-Cycle Corp. completed a Series C private placement with two entities to purchase 281,138 Class A preferred shares at a price of $81.81 per share, for total proceeds of $23.0 million and incurred transaction fees of $1.4 million.

(ii)On August 10, 2021, the Company finalized the business combination described in Note 1. All outstanding common shares and Class A preferred shares of Li-Cycle Corp., 2,407,535 in total, were exchanged for 96,084,679 common shares of Li-Cycle Holdings Corp. at the exchange ratio of 1:39.91. Li-Cycle Holdings Corp. issued an additional 65,671,374 common shares for net proceeds of $525,329,273. As part of this transaction, all outstanding 9,829 Restricted Share Units of Li-Cycle Corp. were settled by issuance of additional 392,276 common shares of Li-Cycle Holdings Corp. and a cashless exercise of 28,779 stock options of Li-Cycle Corp. resulted in an additional 1,031,226 common shares of Li-Cycle Holdings Corp.

(iii)On May 12, 2022, the Company announced the successful completion of the $50 million aggregate investment in common shares of the Company by LG Energy Solution, Ltd. (“LGES”) and LG Chem, Ltd. (“LGC”). The Company issued 5,300,352 shares at an average price of $9.43 per common shares to LGES and LGC (being 2,650,176 common shares each). The investment was split into two tranches: (i) an initial tranche of 4,416,960 common shares, in the aggregate, at a price of $10.00 per share (for an aggregate initial tranche subscription price of approximately $44.2 million), and (ii) a second tranche of 883,392 common shares, in the aggregate, at a price of $6.60 per share (for an aggregate second tranche subscription price of approximately $5.8 million). The total cash inflow, net of transaction costs, was $49.7 million.

Share-Based Payment Arrangement, Option, Activity

A summary of stock option activities is as follows:


	Number of stock options	Weighted average exercise price
Balance as at November 1, 2020	5,327,980	$	0.38
Grants	2,320,989	6.13
Exercises	(2,172,820)	0.62
Forfeitures/cancellations/expirations	(179,595)	1.06
Balance, as at October 31, 2021	5,296,554	2.81
Grants	763,829	7.81
Cashless exercises	(1,547,113)	0.46
Forfeitures/cancellations/expirations	(2,619)	10.93
Balance, as at October 31, 2022	4,510,651	4.46
Grants	—	—
Cashless exercises	(141,919)	0.81
Forfeitures/cancellations/expirations	—	—
Balance, as at December 31, 2022	4,368,732	4.58
Grants	1,088,500	5.76
Cashless exercises	(1,581,424)	0.74
Forfeitures/cancellations/expirations	(157,122)	9.80
Balance, as at December 31, 2023	3,718,686	6.34

Exercisable stock options as at December 31, 2023	1,963,937	$	5.85

A summary of non-vested stock options for the year ended December 31, 2023 is shown below:


	Number	Weighted average grant date fair value
Non-vested balance as at November 1, 2020	2,822,515	$	0.44
Granted during the period	2,320,989	3.59
Vested during the period	(3,910,062)	0.60
Forfeited during the period	(179,595)	0.75
Non-vested balance as at October 31, 2021	1,053,847	6.68
Granted during the period	763,829	4.87
Vested during the period	(557,693)	6.42
Forfeited during the period	(2,619)	6.68
Non-vested balance as at October 31, 2022	1,257,364	5.58
Vested during the period	(10,575)	7.88
Forfeited during the period	—	—
Non-vested balance, as at December 31, 2022	1,246,789	5.56
Granted during the period	1,088,500	3.33
Vested during the period	(466,188)	5.69
Forfeited during the period	(114,352)	5.88
Non-vested balance, as at December 31, 2023	1,754,749	$	4.12

Share-Based Payment Arrangement, Option, Exercise Price Range

A summary of the outstanding stock options is as follows:

As at December 31, 2023

Plans

Range of exercise prices

Number of stock options

Weighted-average remaining contractual life (years)

Expiration year

Legacy Plans

$ 0.37 - 2.15

972,251

5.63

April 2024 - February 2031

LTIP Plan

4.94 - 13.20

2,746,435

8.33

August 2031 - May 2033

Total

3,718,686

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The assumptions used in the stock option pricing model for the grants during the year ended December 31, 2023 were as follows:


Risk free interest rate			3.45% - 3.59%
Expected life of options			6 years
Expected dividend yield			0%
Expected stock price volatility			57.81% - 58.65%
Expected forfeiture rate			0.19%

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity

A summary of RSU activities is as follows:


	Number of RSUs	Weighted average share price on grant
Balance as at November 1, 2020	87,084	$	1.07
Granted	1,021,955	8.29
Vested and settled	(392,276)	1.87
Forfeited/cancelled/expired	—	—
Balance, as at October 31, 2021	716,763	10.93
Granted	1,703,966	8.38
Vested and settled	(317,619)	11.22
Forfeited/cancelled/expired	(55,073)	9.98
Balance, as at October 31, 2022	2,048,037	8.79
Granted	—	—
Vested and settled	(42,534)	13.20
Forfeited/cancelled/expired	(4,823)	10.36
Balance, as at December 31, 2022	2,000,680	8.69
Granted	9,541,333	1.98
Vested and settled	(827,692)	8.70
Forfeited/cancelled/expired	(855,240)	6.13
Balance, as at December 31, 2023	9,859,081	$	2.42