Carbon Revolution Secures Further Release of $5 Million from OIC and is in Ongoing Negotiations with OIC for Further Releases
Carbon Revolution (Nasdaq: CREV), a leading global manufacturer of carbon fiber wheels, announced an agreement with Orion Infrastructure Capital (OIC) for the early release of an additional $5 million from the remaining $30 million in escrow. This release is part of a $110 million Structured Equity Facility. Following this release, Carbon Revolution holds approximately $6.1 million in unrestricted cash and $4.9 million in a restricted trust fund. The company is also negotiating with OIC for the release of the remaining $25 million. There is no certainty that these negotiations will result in further releases.
- Agreement with OIC for the early release of an additional $5 million from escrow.
- The release is part of a $110 million Structured Equity Facility, indicating strong investor backing.
- Following the $5 million release, the company holds $6.1 million in unrestricted cash.
- The company also has $4.9 million in a restricted trust fund, providing additional financial security.
- Uncertainty surrounding the negotiations with OIC for the release of the remaining $25 million.
- The release of funds depends on terms and conditions that may not be favorable or acceptable.
- The company had to modify existing debt agreements to secure the $5 million release, potentially indicating financial strain.
Insights
Carbon Revolution's recent agreement with OIC for a further
A critical point for investors is the company's ability to negotiate further releases from the remaining
For a retail investor, the key takeaway is that while the immediate liquidity boost is positive, the long-term benefits depend on successful further negotiations and effective utilization of the funds to generate returns. The structured equity facility terms and the modifications to existing debt arrangements will need to be reviewed to understand any potential dilution or debt service implications.
The agreement with OIC reflects an ongoing need for liquidity, which might indicate higher operating expenses or investment requirements for Carbon Revolution. Given their position as a Tier 1 OEM supplier and leading manufacturer of carbon fiber wheels, securing such financing is critical to maintaining their competitive edge and supporting R&D for advanced technologies.
From a market perspective, this move may be interpreted as a sign of growth potential, with the funds possibly directed towards scaling production or entering new markets. For a retail investor, this means there is potential for future growth, but it is contingent on how effectively the company can convert this financial lifeline into operational and market success.
However, ongoing dependency on structured equity facilities and debt issuance could be a double-edged sword, potentially leading to future financial strain if not managed properly. Investors should stay alert to how the company handles its debt and equity balance post this release to avoid any surprises.
GEELONG, Australia, May 24, 2024 (GLOBE NEWSWIRE) -- Carbon Revolution plc (Nasdaq: CREV) (the “Company”), a Tier 1 OEM supplier and the leading global manufacturer of lightweight advanced technology automotive carbon fiber wheels, today announced that it has reached an agreement with Orion Infrastructure Capital ("OIC") for the early release of a further US
In addition, the Company and OIC are engaging in ongoing negotiations with respect to the terms for the early release of all, or a portion of, the remaining US
About Carbon Revolution plc
Carbon Revolution plc (Nasdaq: CREV) is the parent of Carbon Revolution Pty Ltd, an early-stage growth company which has successfully innovated, commercialized and industrialized the advanced manufacture of carbon fiber wheels for the global automotive industry. The Company has progressed from single 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 automotive brands. Carbon Revolution is creating a significant and sustainable advanced technology business that supplies its 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 facts contained in this communication are forward-looking statements. Forward-looking statements may generally be identified by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target” or other similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the future financial performance, business strategies, financings and expectations for the Company’s business. These statements are based on various assumptions, whether or not identified in this communication, and on 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 serve as, and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from such assumptions, and such differences may be material. Many actual events and circumstances are beyond the control of Carbon Revolution.
These forward-looking statements are subject to a number of risks and uncertainties, including (i) Carbon Revolution's liquidity, including its ability to pay its obligations and to issue equity, refinance its indebtedness or otherwise obtain financing at all or on acceptable terms, (ii) risks related to our ability to meet financial covenants and other key covenants under existing financing arrangements, (iii) changes in domestic and foreign business, market, financial, political and legal conditions; (iv) the ability to maintain the listing of Carbon Revolution’s securities on the stock exchange; (v) the failure to realize the anticipated benefits of the business combination and related transactions; (vi) risks related to the rollout of Carbon Revolution’s business strategy and the timing of expected business milestones; (vii) the effects of competition on Carbon Revolution’s future business and the ability of the combined company to grow and manage growth, establish and maintain relationships with customers and retain its management and key employees; (viii) risks related to domestic and international political and macroeconomic uncertainty, including the Russia-Ukraine and Israel-Hamas conflicts; (ix) the outcome of any legal proceedings that may be instituted against Carbon Revolution; (x) the impact of pandemic and governmental responses on any of the foregoing risks; (xi) risks related to Carbon Revolution’s industry; (xii) changes in laws and regulations; and (xiii) those factors discussed in the documents Carbon Revolution filed with the SEC, including the Shell Company 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 presently know or that Carbon Revolution currently believes are immaterial that could also cause actual results to differ from those contained 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. Carbon Revolution anticipates that subsequent events and developments will cause Carbon Revolution’s assessments to change. 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 of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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1 Converted to USD at 0.67 for convenience
FAQ
What recent financial agreement did Carbon Revolution (CREV) announce?
How much unrestricted cash does Carbon Revolution have after the recent $5 million release?
What is the total value of Carbon Revolution's Structured Equity Facility with OIC?
Is Carbon Revolution negotiating for further releases from the escrow fund?
What is the status of Carbon Revolution's restricted trust fund?
