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  5. LICY: May I please have your insight into the recent news regarding Glencore purchasing $75,000,000 worth of convertible notes in Li-cycle holdings. [Li-Cycle Holdings Corp.]
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Q: May I please have your insight into the recent news regarding Glencore purchasing $75,000,000 worth of convertible notes in Li-cycle holdings.
Does this make you any more interested in the stock or is it still too early as an investment?
Thanks!
Asked by Brian on March 18, 2024
5i Research Answer:

It is a nice endorsement for sure and the money helps of course. The company is also working on a $375M loan from the US. Still, it is more debt and/or dilution, and the company continues to be very highly cash flow negative. It already has $351M in debt as well. It does certainly make us 'more interested' but the sector is really struggling and we would still hold off here. But, its survivability is less in doubt now, so if it executes from here there is decent potential. 

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