RecycLiCo Battery Materials Mutual Termination of Taiwan Joint Venture with Zenith Chemical Corporation
RecycLiCo Battery Materials and Zenith Chemical have mutually agreed to terminate their Taiwan joint venture for a battery recycling facility. Under the agreement, RecycLiCo will sell its 3,000,000 common shares in the joint venture for USD $581,114.08. In return, Zenith will give back 4,000,000 RecycLiCo common shares and 6,000,000 share purchase warrants.
The decision comes as market conditions have significantly changed since the original 2022 feasibility study, citing shifts in battery material supply streams and increased capitalization costs. RecycLiCo retains ownership of its technology, while Zenith will assume full ownership of the joint venture and discontinue using the RecycLiCo name.
This strategic move allows RecycLiCo to strengthen its cash position, extending its financial runway to nearly a decade at current spending levels. The company plans to redirect resources toward enhancing scientific capabilities and exploring opportunities in core growth markets.
RecycLiCo Battery Materials e Zenith Chemical hanno concordato di comune accordo di terminare la loro joint venture a Taiwan per un impianto di riciclaggio di batterie. Secondo l'accordo, RecycLiCo venderà le sue 3.000.000 azioni ordinarie nella joint venture per USD $581.114,08. In cambio, Zenith restituirà 4.000.000 azioni ordinarie di RecycLiCo e 6.000.000 di warrant per l'acquisto di azioni.
La decisione è stata presa a seguito di significativi cambiamenti nelle condizioni di mercato rispetto allo studio di fattibilità originario del 2022, citando variazioni nelle fonti di approvvigionamento dei materiali per batterie e un aumento dei costi di capitalizzazione. RecycLiCo mantiene la proprietà della sua tecnologia, mentre Zenith assumerà la piena proprietà della joint venture e cesserà di utilizzare il nome RecycLiCo.
Questa mossa strategica consente a RecycLiCo di rafforzare la propria posizione di liquidità, estendendo la sua capacità finanziaria a quasi un decennio ai livelli di spesa attuali. L'azienda intende riallocare le risorse per potenziare le capacità scientifiche ed esplorare opportunità nei mercati core in crescita.
RecycLiCo Battery Materials y Zenith Chemical han acordado mutuamente terminar su empresa conjunta en Taiwán para una planta de reciclaje de baterías. Según el acuerdo, RecycLiCo venderá sus 3.000.000 acciones comunes en la empresa conjunta por USD $581,114.08. A cambio, Zenith devolverá 4.000.000 acciones comunes de RecycLiCo y 6.000.000 warrants para la compra de acciones.
La decisión se toma debido a cambios significativos en las condiciones del mercado desde el estudio de viabilidad original de 2022, citando cambios en las fuentes de suministro de materiales para baterías y un aumento en los costos de capitalización. RecycLiCo mantiene la propiedad de su tecnología, mientras que Zenith asumirá la propiedad total de la empresa conjunta y dejará de usar el nombre RecycLiCo.
Esta estrategia permite a RecycLiCo fortalecer su posición de efectivo, extendiendo su capacidad financiera a casi una década con los niveles actuales de gasto. La compañía planea redirigir recursos para mejorar sus capacidades científicas y explorar oportunidades en mercados clave en crecimiento.
RecycLiCo Battery Materials와 Zenith Chemical은 배터리 재활용 시설을 위한 대만 합작 회사를 상호 합의 하에 종료하기로 결정했습니다. 이 협약에 따라 RecycLiCo는 합작 회사의 보통주 3,000,000주를 USD $581,114.08에 매각합니다. 그 대가로 Zenith는 RecycLiCo 보통주 4,000,000주와 주식 매수권 6,000,000주를 반환합니다.
이 결정은 2022년 최초 타당성 조사 이후 배터리 소재 공급 흐름 변화와 자본 비용 증가 등 시장 상황이 크게 변한 점을 반영한 것입니다. RecycLiCo는 기술 소유권을 유지하며, Zenith는 합작 회사의 전면 소유권을 인수하고 RecycLiCo 명칭 사용을 중단합니다.
이 전략적 조치는 RecycLiCo가 현금 유동성을 강화하여 현재 지출 수준에서 거의 10년간 재무 여력을 확보할 수 있게 합니다. 회사는 과학 역량 강화와 핵심 성장 시장에서의 기회 탐색에 자원을 재배치할 계획입니다.
RecycLiCo Battery Materials et Zenith Chemical ont convenu mutuellement de mettre fin à leur coentreprise à Taïwan pour une installation de recyclage de batteries. Conformément à l'accord, RecycLiCo vendra ses 3 000 000 d'actions ordinaires dans la coentreprise pour 581 114,08 USD. En retour, Zenith restituera 4 000 000 d'actions ordinaires RecycLiCo et 6 000 000 de bons de souscription d'actions.
Cette décision intervient alors que les conditions du marché ont considérablement évolué depuis l'étude de faisabilité initiale de 2022, citant des changements dans les flux d'approvisionnement en matériaux pour batteries et une augmentation des coûts de capitalisation. RecycLiCo conserve la propriété de sa technologie, tandis que Zenith assumera la pleine propriété de la coentreprise et cessera d'utiliser le nom RecycLiCo.
Cette démarche stratégique permet à RecycLiCo de renforcer sa trésorerie, prolongeant ainsi sa capacité financière à près d'une décennie aux niveaux de dépenses actuels. La société prévoit de réorienter ses ressources pour renforcer ses capacités scientifiques et explorer des opportunités sur ses marchés clés en croissance.
RecycLiCo Battery Materials und Zenith Chemical haben sich einvernehmlich darauf geeinigt, ihr Joint Venture in Taiwan für eine Batterierecyclinganlage zu beenden. Im Rahmen der Vereinbarung wird RecycLiCo seine 3.000.000 Stammaktien am Joint Venture für USD $581.114,08 verkaufen. Im Gegenzug gibt Zenith 4.000.000 RecycLiCo-Stammaktien und 6.000.000 Kaufoptionsscheine zurück.
Die Entscheidung erfolgte aufgrund signifikanter Veränderungen der Marktbedingungen seit der ursprünglichen Machbarkeitsstudie von 2022, unter anderem bedingt durch Veränderungen in den Lieferströmen von Batteriematerialien und gestiegene Kapitalkosten. RecycLiCo behält das Eigentum an seiner Technologie, während Zenith die volle Eigentümerschaft am Joint Venture übernimmt und die Nutzung des Namens RecycLiCo einstellt.
Dieser strategische Schritt ermöglicht es RecycLiCo, seine Liquiditätsposition zu stärken und die finanzielle Reichweite bei den aktuellen Ausgaben auf nahezu ein Jahrzehnt zu verlängern. Das Unternehmen plant, Ressourcen umzulenken, um seine wissenschaftlichen Fähigkeiten zu verbessern und Chancen in Kernwachstumsmärkten zu erkunden.
- Company retains ownership of its core recycling technology
- Cash position strengthened with USD $581,114 from share sale
- Financial runway extended to nearly 10 years at current spending
- Recovery of 4M company shares and 6M warrants reduces potential dilution
- Elimination of capital commitments preserves cash for core growth markets
- Abandonment of planned Taiwan battery recycling facility
- Termination of strategic joint venture with Zenith Chemical
- Deteriorating market conditions compared to 2022 feasibility study
- Increased capitalization costs versus initial projections
- Loss of Asian market expansion opportunity
SURREY, British Columbia, April 29, 2025 (GLOBE NEWSWIRE) -- RecycLiCo Battery Materials Inc. (“RecycLiCo” or the “Company”) (TSX.V: AMY | OTCQB: AMYZF | FSE: ID4), a pioneer in sustainable lithium-ion battery recycling and upcycling technologies, today announced that the Company and its joint venture partner Zenith Chemical Corporation (“Zenith”) have jointly determined to abandon the construction of a battery recycling facility in Taiwan and have entered into a definitive Mutual Release and Termination Agreement (the “Agreement”) to unwind their previously established joint venture Company.
Under the terms of the Agreement, RecycLiCo will sell to Zenith its entire interest in 3,000,000 common shares of the joint venture company, RecycLiCo Zenith Battery Materials Technology Co., for gross proceeds of USD
The Agreement provides for the full and final settlement of all rights and obligations between the parties relating to the joint venture. Effective as of the closing date, Zenith will assume full ownership of the joint venture and will take steps to discontinue the use of the RecycLiCo name and dissolve the joint venture company pursuant to applicable Taiwanese regulations.
“This decision reflects a mutual recognition by both Zenith and the Company of the evolving world economic and geopolitical environment,” said Richard Sadowsky, Interim Chief Executive Officer of RecycLiCo. “Market conditions are not what they were in 2022 when the original joint venture feasibility study was conducted. There have been changes in battery material supply streams and increased capitalization costs relative to the initial projections, which were prepared during a period of elevated lithium prices. We thank our partners at Zenith for their support and collaboration.”
“The Company remains firmly committed to its global commercialization strategy and focus on flexible, capital-efficient growth. By eliminating the capital commitments associated with the joint venture, we have significantly strengthened our cash position and extended our financial runway to nearly a decade at current spending levels. We can now direct more resources toward enhancing our scientific and technical capacity and exploiting opportunities in our core growth markets, including potential strategic investments in companies with complementary technology.“
RecycLiCo Battery Materials Inc. is a battery materials company specializing in sustainable lithium-ion battery upcycling and materials production. RecycLiCo has developed advanced technologies that efficiently recover battery-grade materials from lithium-ion batteries, addressing the global demand for environmentally friendly solutions in energy storage. With minimal processing steps and up to
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward–looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
FAQ
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