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Li-Cycle Holdings Corp., the Toronto-based lithium-ion battery resource recovery company, announced its board of directors has adopted a limited duration shareholder rights plan while also furloughing or laying off 20 employees due to the pause in construction at the Rochester Hub.

Li-Cycle’s news release about stocks says the rights plan is “intended to protect the long-term interests of Li-Cycle and Li-Cycle’s shareholders.”

The company says the plan is “designed to protect against unequal treatment of the company’s shareholders and reduce the likelihood that any person or group will gain control of, or exert significant influence over, Li-Cycle, including through open-market accumulations, without appropriately compensating Li-Cycle’s shareholders for control.”

Li-Cycle recently halted construction of its $485 million Rochester Hub, citing a sharp rise in construction costs compared to budgeted estimates. Further information on how or if the company will proceed with the project is expected in the Nov. 13 quarterly financial report.

The company on Thursday afternoon said the pause will impacted approximately 20 of its own employees. The majority will be furloughed “and some employees will be laid off,” a statement said.

More than 200 union trade workers, along with 102 non-union employees of MasTec, were left without work after the construction pause.

RELATED: Two stockholder-rights law firms launch investigations into Li-Cycle

The shareholder rights plan will mirror other rights plans adopted by publicly traded companies in the U.S., the company said. Li-Cycle will issue one right for each common share of outstanding stock as of the close of business on Nov. 10.

According to the company, rights generally will become exercisable only if an applicable person or group acquires beneficial ownership of 20 percent or more in a transaction not approved by the board of directors.

In that situation, the company said, each holder will have the right to purchase (for $12.50), a number of common shares having a then-current market value of twice the purchase price. In addition, at any time after, an applicable person or group acquires 20 percent or more of the company’s common shares, the board may deem all or part of the rights exercised at a ratio of one common share for each outstanding right for a nil purchase price per right.

The rights plan will expire on Oct. 30, 2024.

Two New York City-based law firms that focus on stockholder rights last week announced they have launched investigations into potential claims against Li-Cycle.

Bragar Eagel & Squire, P.C., and Kirby McInerney LLP say they are investigating concerns whether the company or company officers “violated federal securities laws and/or engaged in other unlawful business practices.”

A Los Angeles-based firm, the Law Offices of Frank R. Cruz, said on Wednesday that it has launched a similar investigation.

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