GEELONG, Australia, Dec. 23, 2024 (GLOBE NEWSWIRE) — Carbon Revolution plc (Nasdaq: CREV) (the “Company”), a Tier 1 OEM supplier and leading global manufacturer of lightweight, advanced technology automotive carbon fiber wheels, today announced… , announced that it has reached an agreement with Orion Infrastructure Capital (“OIC”) for an additional US$25 million in financing, which will be issued in five tranches, each equivalent to US$5. One million dollars, subject to meeting certain conditions for release. In connection with the release of each of the five US$5 million tranches, the Company will issue to the OIC and the lenders under the US$60 million PIUS Loan entered into in May 2023 (the “Existing Noteholders”), penny guarantees to purchase a total of Shares equal 5.0% of the company's outstanding shares.
The original US$110 million financing agreement with the OIC included US$70 million previously drawn down and up to US$40 million in additional financing provided by the OIC, of which US$25 million has now been secured. In connection with this additional US$25 million, existing bondholders also agreed to release up to US$2 million of existing loan reserves in five equal tranches of US$400,000 in conjunction with the five OIC financing tranches. Following this additional financing totaling US$27 million, both OIC and existing bondholders also agreed to partially repay in-kind, rather than cash, certain interest payments.
The first of these five financing tranches closed on Friday, December 20, 2024.
The additional $25 million of capital, buffer release and changes to interest terms are intended to support the ongoing liquidity of the business and fund the company as it works to meet demand from Carbon Revolution's OEM customers. The company is making significant investments in capacity and productivity and has a number of new programs entering production or expected to enter production in the near term.
“The OIC remains a great funding partner for Carbon Revolution, sharing our vision for our world-leading technology,” said Jake Dingle, CEO of Carbon Revolution. “This capital supports the ongoing liquidity of the business and supports the continued delivery of our increased production capacity and the near-term launch of a number of new OEM programs.”
“We are firm believers in the carbon revolution and the transformative impact of lightweight value propositions,” said Chris Leary, Investment Partner and Head of Infrastructure Equities at OIC. “The progress the company has made in its capacity investments and increased production efficiencies, as the only company capable of mass-producing carbon fiber wheels, has demonstrated the unparalleled value to vehicle OEMs as they modernize their product portfolios.”
The terms and conditions of the financing are summarized in the company's filing with the Securities and Exchange Commission, which can be accessed here.
The Company continues to work diligently to file its annual report as quickly as possible to regain compliance with Nasdaq Listing Rule 5250(c)(1) as described herein.
About Carbon Revolution plc
Carbon Revolution plc (Nasdaq: CREV) (the “Company” or “Carbon Revolution”) is the parent company of Carbon Revolution Pty Ltd, an early-stage growth company that has successfully innovated, marketed and manufactured advanced manufacturing of carbon fiber wheels for the global automotive industry. The company has evolved from individual prototypes to designing and manufacturing lightweight wheels for cars and SUVs in the high-performance, premium and luxury segments, for the world's most prestigious car brands. Carbon Revolution is creating a significant and sustainable advanced technology company that provides lightweight wheel technology to automotive manufacturers around the world.
For more information, visit Carbonrev.com.
Forward-looking statements
All statements other than statements of historical fact contained in this release are forward-looking statements. Forward-looking statements can generally be identified by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “expect,” “intend,” “expect,” “should”, “will”, “plan”, “plan”, “anticipate”, “anticipate”, “potential”, “appear”, “seek”, “future”, “outlook”, “goal”, Other similar expressions (or versions negative of such words or expressions) that predict or indicate future events or trends or are not statements of historical matters These forward-looking statements include, but are not limited to, statements regarding the expectation that Carbon Revolution's common stock and warrants will continue to be listed on the Nasdaq, The Company's ability to file its annual report and regain immediate compliance with Nasdaq Listing Rule 5250(c(1), future financial performance, business strategies, financing and outlook for the Company's business different, whether or not identified in this communication, and to the current expectations of Carbon Revolution's management and are not predictions of actual performance These forward-looking statements are provided for illustrative purposes only and are not intended to, and should not, serve as a guarantee, assurance, prediction or definitive statement of fact or contingency. Any investor depends on it. Actual events and conditions are difficult or impossible to predict and may differ from these assumptions, and such differences may be material. Many actual events and circumstances are beyond the control of the carbon revolution.
These forward-looking statements are subject to a number of risks and uncertainties, including (1) the ability to maintain a listing of Carbon Revolution's securities on the Nasdaq or any other exchange on which such securities may be listed in the future; (2) failure to realize the benefits of being listed on a U.S. stock exchange and publicly traded in the United States; (iii) Carbon Revolution's liquidity, including its ability to repay its obligations, issue shares, refinance its indebtedness or obtain financing at all or on acceptable terms, (iv) risks relating to its ability to meet or obtain financial and other key covenants under existing financing arrangements. waivers or release from compliance with these covenants, which may result in the acceleration of existing indebtedness, (5) changes in domestic and foreign business, market, financial, political and legal conditions; (6) risks related to the rollout of Carbon Revolution's business strategy and the timing of expected business accomplishments; (7) the effects of competition on Carbon Revolution's future business and the combined company's ability to grow, manage growth, establish and maintain customer relationships and retain its management and key employees; (8) risks related to domestic and international political and macroeconomic uncertainty, including the conflict between Russia and Ukraine and conflicts in the Middle East; (ix) the outcome of any legal actions that may be taken against the Carbon Revolution; (10) the impact of the pandemic and government responses on any of the above risks; (11) risks related to the carbon revolution industry; (12) changes in laws and regulations; and (13) those factors discussed in documents filed by Carbon Revolution with the Securities and Exchange Commission, including Shell's (LON:) Report on Form 20-F.
If any of these risks materialize or Carbon Revolution's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Carbon Revolution does not currently know or that Carbon Revolution does not currently believe are immaterial that may also cause actual results to differ from those in the forward-looking statements. In addition, forward-looking statements reflect Carbon Revolution's expectations, plans or forecasts of future events and views as of the date of this communication. The Carbon Revolution anticipates that subsequent events and developments will change assessments of the Carbon Revolution. However, while Carbon Revolution may elect to update these forward-looking statements at some point in the future, Carbon Revolution specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing Carbon Revolution's assessments as of any date subsequent to the date hereof. Accordingly, undue reliance should not be placed on forward-looking statements.
For more information, please contact:
Investors
investors@carbonrev.com
Media
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