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I read that Li-Cycle (LICY), a Li-ion battery recycling company, is increasing the size of a large recycling plant. To do this:

The Company estimates that the Hub will require a total capital investment of approximately $485 million (+/-15%), which can be funded from existing balance sheet cash.

Source: https://finance.yahoo.com/news/li-cycle-upsize-capacity-first-111500266.html

What does "existing balance sheet cash" mean in this context? According to Benzinga as well as Google Finance, they had $2.4 million in cash and cash equivalents as of 2021 July.

What is this "existing balance sheet cash" that they can tap for the needed $482.6 million?

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  • which public record are you looking at? Their IR site says they had $2.4 billion in cash after July 2021.
    – D Stanley
    Commented Dec 15, 2021 at 19:46
  • @DStanley Thank you for your comment. I looked through my notes and found that $2.4M figure reported by Benzinga and Google Finance. I updated the question to reflect this. Are both Benzinga and Google wrong? Commented Dec 15, 2021 at 20:04
  • @DStanley Thanks. I have a hunch this may be yet another case where one source reported the wrong information and everyone else was lazy and just copied the wrong information from that source. It's amazing how many "facts" are based on a single error that gets repeated hundreds of times by other "trusted sources". Commented Dec 15, 2021 at 20:10
  • Ugh. I was me that misread their report... It is in dollars, not thousands. So I have no idea where the $485 million is coming from.
    – D Stanley
    Commented Dec 15, 2021 at 20:10
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    Although the original question remains unanswered, this is a good reminder to always verify everything original sources. The downside, of course, is the time & energy spent to do so. Commented Dec 15, 2021 at 20:15

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It usually means just what it is, i.e. the readily available cash & securities on a company's balance sheet. In the case of Li-Cycle, the press release on 3Q21 results states that the company completed its public listing through a business combination in August 2021, raising $527 million. Probably that is the cash being referred to in the Yahoo news report you have mentioned.

As the Li-Cycle's 3Q21 balance sheet is as of the end of July 2021, it would not include the cash raised from the public listing. That cash should be visible on the YE21 balance sheet when announced.

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