Our warrants for LiCycle (LICY.WS) are being redeemed by the company.
You must do one of two things:
1) Sell your warrants in the market by January 22; or
2) Tell the company you want to exchange warrants for shares. If you do nothing by the close of business on January 22, your warrants will be automatically cashed out for just 10 cents apiece.
We recommend selling immediately if you have a profit on the position. The Excelsior Portfolio bought at 2.43; warrants are near 2.50 this morning.
Illogically, the prices of SPAC warrants called for redemption often don’t reflect time erosion like other derivatives do, so we can risk probably two weeks to wait for a better price, if desired.
Warrants could be exchanged for shares on a cashless basis, with each equal to about 0.268 a share based on SPAC IPO terms. If you wish to examine the terms, access the final prospectus for Peridot Acquisition Corp., the SPAC which merged with Li-Cycle. The pre-merger filings aren’t linked with Li-Cycle in the SEC database, so search under the CIK 0001821317 at SEC.gov. The filing is September 24, 2020; terms of the cashless exchange are on page 154.
Please let me know if you have any questions or comments. You can reach me at brendan@cabot.net. I hope your holidays have been peaceful and profitable.