Carbon Revolution Secures Further Release of $5 Million from OIC as Company Hits Financing Milestones

Rhea-AI Summary

Carbon Revolution (Nasdaq: CREV), a leading global manufacturer of lightweight carbon fiber wheels, announced the release of an additional $5 million from a $35 million financing facility. This brings the total released amount to $20 million. The company issued a warrant to OIC, allowing it to purchase 2.5% of Carbon Revolution's outstanding shares. The funds will support increasing production capacity and meeting growing OEM customer demand. Carbon Revolution is investing heavily in production and achieving record output rates.

Positive

• Carbon Revolution received an additional $5 million in financing, totaling $20 million released from the $35 million facility.
• The funds will be used to increase production capacity and meet growing OEM customer demand.
• Carbon Revolution is producing wheels at record rates.

Negative

• In connection with the financing release, Carbon Revolution issued a warrant to OIC to purchase 2.5% of its outstanding shares, potentially diluting existing shareholders.

Insights

Financial Analyst

The release of $5 million from the escrowed facility is a significant positive development for Carbon Revolution. This additional funding boosts the company's liquidity, enabling it to continue investing in capacity expansion and meeting the growing demand from its OEM customers.

Issuing a warrant to OIC to purchase shares equivalent to 2.5% of the company's outstanding shares is an important factor to watch. While this will dilute existing shareholders, it also signals confidence from OIC in the company's future prospects.

No immediate financial red flags are apparent and this capital influx should help stabilize operations and support growth in the short to medium term. However, investors should monitor future cash flows and the company's ability to maintain production rates while balancing expenditure.

Market Research Analyst

This financing milestone indicates that Carbon Revolution is making tangible progress in scaling its operations. The company's focus on increasing capacity and throughput to meet OEM demand is important in the competitive automotive industry, where timely supply can define market positioning.

Investors should note the strategic importance of this funding in reinforcing Carbon Revolution's market position as a leading manufacturer of lightweight carbon fiber wheels. The expanding production capabilities suggest the company anticipates robust demand growth, potentially signaling a positive outlook for the broader automotive sector.

However, the issuance of warrants could temper the enthusiasm slightly, as it introduces potential future dilution. Yet, the overall strategic direction appears sound.

GEELONG, Australia, July 11, 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 satisfied certain reserve release conditions and received US$5 million of the escrowed US$35 million facility, of which, as a result of this most recent release, $20 million has been released. In connection with the release the Company issued to OIC a warrant to purchase a number of shares equal to 2.5% of the Company’s shares outstanding.

Proceeds from the OIC investment will continue to fund the company as it works to satisfy the growing demand from Carbon Revolution’s OEM customers. The Company is making substantial investments in capacity and throughput and has been producing wheels at record rates.

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.

For further information, please contact:

Investors
Investors@carbonrev.com

Media
Media@carbonrev.com

FAQ

What is the latest financing milestone achieved by Carbon Revolution (CREV)?

Carbon Revolution has received an additional $5 million from a $35 million financing facility, bringing the total released amount to $20 million.

How much of the $35 million facility has Carbon Revolution (CREV) released?

Carbon Revolution has released $20 million from the $35 million financing facility.

What did Carbon Revolution (CREV) issue to OIC in connection with the financing release?

Carbon Revolution issued a warrant to OIC to purchase 2.5% of the company’s outstanding shares.

What will Carbon Revolution (CREV) use the $5 million from OIC for?

Carbon Revolution will use the funds to increase production capacity and meet growing demand from OEM customers.

What record has Carbon Revolution (CREV) achieved in production?

Carbon Revolution has been producing wheels at record rates.