Carbon Revolution Secures Further Release of $5 Million from OIC and further $0.4 Million Reserve Release from Existing Lenders
Carbon Revolution (CREV) has secured an additional US$5 million release from Orion Infrastructure Capital (OIC), representing the second tranche of the previously announced US$25 million facility. Additionally, Existing Noteholders have released US$400,000 from loan reserves, bringing total reserve releases to US$800,000 of the agreed US$2 million.
As part of this funding arrangement, CREV will issue penny warrants to OIC and Existing Noteholders, representing 5.0% of outstanding shares. Both lenders may agree to accept partial interest payments in kind rather than cash. The combined US$27 million funding package aims to support business liquidity and fund customer demand satisfaction. The company is investing in capacity expansion with several new programs entering production soon.
Carbon Revolution (CREV) ha ottenuto un ulteriore 5 milioni di dollari USA da Orion Infrastructure Capital (OIC), rappresentando la seconda tranche del già annunciato facilità da 25 milioni di dollari USA. Inoltre, i possessori di note esistenti hanno liberato 400.000 dollari USA dai fondi di riserva dei prestiti, portando il totale delle liberazioni di riserva a 800.000 dollari USA dei 2 milioni di dollari USA concordati.
Come parte di questo accordo di finanziamento, CREV emetterà opzioni a penny a OIC e ai possessori di note esistenti, rappresentando il 5,0% delle azioni in circolazione. Entrambi i finanziatori potrebbero concordare di accettare pagamenti di interessi parziali in natura anziché in contante. Il pacchetto di finanziamento combinato da 27 milioni di dollari USA mira a supportare la liquidità aziendale e a soddisfare la domanda dei clienti. L'azienda sta investendo nell'espansione della capacità con diversi nuovi programmi che entreranno in produzione a breve.
Carbon Revolution (CREV) ha asegurado una liberación adicional de 5 millones de dólares EE. UU. de Orion Infrastructure Capital (OIC), que representa la segunda parte de la facilidad de 25 millones de dólares EE. UU. previamente anunciada. Además, los tenedores de notas existentes han liberado 400,000 dólares EE. UU. de las reservas de préstamos, llevando el total de liberaciones de reservas a 800,000 dólares EE. UU. de los 2 millones de dólares EE. UU. acordados.
Como parte de este acuerdo de financiamiento, CREV emitirá opciones a un centavo a OIC y a los tenedores de notas existentes, representando el 5.0% de las acciones en circulación. Ambos prestamistas podrían acordar aceptar pagos de intereses parciales en especie en lugar de efectivo. El paquete de financiamiento combinado de 27 millones de dólares EE. UU. tiene como objetivo apoyar la liquidez del negocio y satisfacer la demanda de los clientes. La empresa está invirtiendo en la expansión de capacidad con varios nuevos programas que entrarán en producción pronto.
Carbon Revolution (CREV)는 Orion Infrastructure Capital (OIC)로부터 추가 500만 달러의 자금을 확보하였으며, 이는 이전에 발표된 2500만 달러 조정의 두 번째 할당입니다. 또한, 기존 채권자들은 대출 준비금에서 40만 달러를 해제하여 총 준비금 해제를 80만 달러로 증가시켰으며, 이는 합의된 200만 달러에 해당합니다.
이 자금 조달 협정의 일환으로, CREV는 OIC와 기존 채권자들에게 5.0%의 미발행 주식의 권리를 만기까지 발행할 것입니다. 두 대출자는 현금 대신 부분 이자 지급을 수량으로 수용하는 것에 동의할 수 있습니다. 총 2700만 달러의 자금 패키지는 사업의 유동성을 지원하고 고객의 수요 충족을 목표로 하고 있습니다. 회사는 여러 새로운 프로그램을 생산에 투입함으로써 용량 확장에 투자하고 있습니다.
Carbon Revolution (CREV) a obtenu une nouvelle libération de 5 millions de dollars US de la part d'Orion Infrastructure Capital (OIC), représentant la deuxième tranche de la facilité de 25 millions de dollars US précédemment annoncée. De plus, les détenteurs de titres existants ont libéré 400 000 dollars US des réserves de prêt, portant le total des libérations de réserve à 800 000 dollars US des 2 millions de dollars US convenus.
Dans le cadre de cet accord de financement, CREV émettra des bons de souscription à un cent à OIC et aux détenteurs de titres existants, représentant 5,0% des actions en circulation. Les deux prêteurs peuvent convenir d'accepter des paiements partiels d'intérêts en nature plutôt qu'en espèces. Le paquet de financement combiné de 27 millions de dollars US vise à soutenir la liquidité de l'entreprise et à satisfaire la demande des clients. L'entreprise investit dans l'expansion de ses capacités avec plusieurs nouveaux programmes qui entreront bientôt en production.
Carbon Revolution (CREV) hat weitere 5 Millionen US-Dollar von Orion Infrastructure Capital (OIC) erhalten, was die zweite Tranche der zuvor angekündigten 25 Millionen US-Dollar darstellt. Darüber hinaus haben bestehende Gläubiger 400.000 US-Dollar aus den Darlehensreserven freigegeben, was die Gesamtsumme der freigegebenen Reserven auf 800.000 US-Dollar von den vereinbarten 2 Millionen US-Dollar bringt.
Im Rahmen dieser Finanzierungsvereinbarung wird CREV Penny-Warrants an OIC und die bestehenden Gläubiger ausgeben, die 5,0% der ausgegebenen Aktien darstellen. Beide Geldgeber könnten sich darauf einigen, teilweise Zinszahlungen in Form von Sachleistungen statt in Barzahlungen zu akzeptieren. Das gesamte 27 Millionen US-Dollar umfassende Finanzierungspaket zielt darauf ab, die Unternehmensliquidität zu unterstützen und die Kundennachfrage zu befriedigen. Das Unternehmen investiert in die Kapazitätserweiterung, wobei mehrere neue Programme bald in Produktion gehen.
- Secured additional US$5 million funding from OIC facility
- Obtained US$400,000 release from existing loan reserves
- Lenders agreed to potential interest payments in kind, improving cash flow flexibility
- Dilutive impact from 5.0% warrant issuance to lenders
- Company remains non-compliant with Nasdaq listing requirements
- No assurance of meeting conditions for remaining US$15 million facility release
Insights
The latest $5.4M funding release represents a critical but potentially concerning development for Carbon Revolution. While securing additional liquidity is positive, several red flags warrant attention:
- The incremental nature of the funding release ($10M out of $25M) suggests tight controls from lenders, possibly indicating concerns about the company's financial health or execution capabilities.
- The issuance of penny warrants representing 5% dilution of outstanding shares, combined with the potential for PIK interest payments, indicates significant concessions to secure funding.
- The delayed annual report filing and pending Nasdaq compliance issues raise governance concerns and could impact investor confidence.
The company's focus on capacity expansion amid confirmed OEM demand presents a double-edged sword: while it validates the market opportunity, it also increases execution risk given the capital-intensive nature of manufacturing scale-up. The $27M total funding package, if fully accessed, would provide important working capital, but the conditional nature of the remaining $15M creates uncertainty about long-term liquidity.
The shift towards allowing PIK interest payments suggests lenders are providing flexibility while acknowledging potential cash flow constraints. This arrangement helps preserve short-term liquidity but could increase long-term debt burden and financing costs.
GEELONG, Australia, Jan. 24, 2025 (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 Orion Infrastructure Capital ("OIC") has released an incremental US
Following this combined US
The Company continues to work diligently to file its Annual Report as promptly as practical to regain compliance with Nasdaq Listing Rule 5250(c)(1) as described here.
About Carbon Revolution plc
Carbon Revolution plc (Nasdaq: CREV) (the “Company” or “Carbon Revolution”) 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 expectation of continued listing of Carbon Revolution’s ordinary shares and warrants on Nasdaq, the Company’s ability to file its Annual Report and promptly regain compliance with Nasdaq Listing Rule 5250(c)(1), 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) the ability to maintain the listing of Carbon Revolution’s securities on Nasdaq or any other exchange on which such securities may be listed in the future; (ii) the failure to realize the benefits of being listed on a U.S. securities exchange and publicly-traded in the United States; (iii) 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, (iv) risks related to its ability to meet financial covenants and other key covenants under existing financing arrangements or to obtain waivers or forbearance from compliance with such covenants, which could result in the acceleration of outstanding indebtedness, (v) changes in domestic and foreign business, market, financial, political and legal conditions; (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 conflicts in the Middle East; (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.
For further information, please contact:
Investors
Investors@carbonrev.com
Media
Media@carbonrev.com
FAQ
How much funding has Carbon Revolution (CREV) secured from OIC's US$25 million facility?
What is the total amount of loan reserves released by CREV's Existing Noteholders?
What warrants is CREV issuing as part of the January 2024 funding tranche?
How will CREV use the combined US$27 million funding package?
