Batteries International reported in May that Li-Cycle had launched a formal sale of its business or assets and had also started proceedings in the US Bankruptcy Court for the Southern District of New York.

Now the Ontario Securities Commission has issued the CTO because of Li-Cycle’s failure to file necessary disclosures including interim financial statements, for the period ended last March.
The CTO prohibits any person or company from trading, directly or indirectly, in any security of the company in Ontario and other jurisdictions of Canada.

Li-Cycle said that given ongoing proceedings under Canada’s Companies’ Creditors Arrangement Act (CCAA). it has determined that it does not intend to devote additional time or financial resources towards its public disclosure obligations in the country and the US.

The company said previously it had been working to cut costs and seek financing and “strategic alternatives” to fund its business. However, the board later said the firm’s special committee of independent directors instead believed it was in the best interests of the company to launch CCAA proceedings.