Li-Cycle is going public as the company prepares for a merger with special purpose acquisition company (SPAC) Peridot Acquisition (NYSE:PDAC) and PDAC stock is up.
Here’s everything potential investors in PDAC stock need to know about the Li-Cycle SPAC merger.
- The merger will have Peridot Acquisition changing its name to Li-Cycle Holdings Corp.
- This will also see shares of PDAC stock change to the new LICY stock ticker.
- Ajay Kochhar, co-founder, president and CEO of Li-Cycle, and Tim Johnston, co-founder and executive chairman, will lead the combined company.
- The deal values Li-Cycle at a pre-money equity valuation of $975 million.
- It also implies a combined company pro forma equity value of $1.67 billion.
- Li-Cycle will have $615 million in gross proceeds to work with after the SPAC merger.
- That includes $315 million in funding from a private investment in public equity (PIPE).
- The SPAC merger has the unanimous support of both companies Boards of Directors.
- It needs approval from regulators and shareholders before it can close.
- Peridot Acquisition and Li-Cycle are expecting the deal to close in the second quarter of 2021.
- Li-Cycle is a lithium-ion battery company with a focus on recycling components from old batteries.
- The company says this focus allows it to salvage parts of dead lithium-ion batteries and reintroduce them to the supply chain.
- This allows for a greener approach to battery production as demand increases alongside electric vehicles (EVs).
PDAC stock was up 3.4% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.