Peridot Acquisition Corp. surges as SPAC set to merge with battery recycler Li-Cycle

• Peridot Acquisition Corp. stock climbed past $17 in early trading Tuesday on news it would merge with Li-Cycle.
• The newly combined company Li-Cycle Holdings Corp. will trade on the NYSE under ticker ‘LICY’.
• The deal is expected to close in the second quarter and have a pro forma equity value of about $1.67 billion.
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Peridot Acquisition Corp. stock climbed Tuesday as the SPAC struck an agreement to merge with Li-Cycle, a lithium-Ion battery recycler.

The two companies said in a joint statement that the deal will result in the creation of Li-Cycle Holdings Corp. and that the combined company will have a pro forma equity value of about $1.67 billion.

Peridot stock rose by as much as 14% to $15.74 before paring the gain to 4% during the regular session. The stock ahead of the opening bell climbed as much as 28% to $17.79.

Li-Cycle, which was founded in Toronto in 2016, has commercial contracts with more than 40 blue chip suppliers, among other business agreements, with customers including 14 of the world’s largest automotive and battery manufacturers.

The companies said Li-Cycle should receive about $615 million in gross transaction proceeds, which will be used toward the company’s plans to expand worldwide. All of Li-Cycle’s existing shares will roll into the combined company, they said.

“Li-Cycle is at the forefront of one of the most crucial and under-penetrated markets in clean technology that is growing in lock-step with the electrification of mobility,” said Peridot Chief Executive Alan Levande, who will join Li-Cycle’s board of directors.

Investors in the deal include Neuberger Berman Funds, Franklin Templeton and Mubadala Capital and Peridot’s sponsor Carnelian Energy Capital.

The newly merged company will be listed on the New York Stock Exchange and trade under the ticker symbol “LICY.” The deal is expected to close in the second quarter of 2021.

Roughly 130 SPACs have gone public in 2021, outpacing the first nine months of 2020, according to investment firm Accelerate.