GEELONG, Australia, Dec. 23, 2024 (GLOBE NEWSWIRE) — Carbon Revolution plc (Nasdaq: CREV) (the “Company”), a Tier 1 OEM supplier and the world's leading manufacturer of high-tech lightweight carbon fiber automotive wheels, today announced that it has reached an agreement with Orion Infrastructure Capital (“OIC”) for an additional $25 million. The funding, which will be released in five tranches, each equal to 5 million US dollars, subject to certain release conditions. In connection with the release of each of the five shares of $ 5, the Company will download the OIC and the lenders under the US $ 60 million PIUS loan entered into in May 2023 (the “Existing Note Holders”), a penny consent to purchase the aggregate . number of shares equal to 5.0% of the Company's outstanding shares.
The initial US$110 million financing agreement with the OIC includes US$70 million previously committed and an additional US$40 million financing provided by the OIC, of which US$25 million is secured. In connection with this US$25 million, the existing Noteholders have also agreed to release up to US$2 million of existing loans in five equal shares of US$400,000 concurrently with five tranches of OIC financing. Following this combined US$27 million in additional financing, both the OIC and the existing Noteholders also agreed to pay a portion, in lieu of cash, of certain interest payments.
The first of the five funding rounds closes on Friday December 20, 2024.
The addition of $25 million, a reserve release and a change in interest rates, is designed to support the continued existence of the business and to finance the Company as it works to satisfy the demands of Carbon Revolution's OEM customers. The company is making significant investments in capabilities and efficiency and has a number of new systems entering, or expected to enter, production in the near term.
“OIC continues to be a great funding partner for Carbon Revolution, sharing our vision for world-leading technology,” said Jake Dingle, CEO of Carbon Revolution. “This capital supports the company's ongoing liquidity and supports the continued deployment of increased manufacturing capacity and the near-term launch of new OEM systems.”
“We are firm believers in the Carbon Revolution and its transformative value proposition,” said Chris Leary, Investment Partner and Head of Infra Equity at OIC. “The progress made by the Company in terms of investment in energy and increasing the efficiency of its production, as the only company capable of producing carbon fiber wheels at scale, has further demonstrated its immeasurable value to automotive OEMs as they improve their product portfolios.”
The terms and conditions of the financing are summarized in the Company's filing with the SEC, which can be accessed here.
The Company continues to work diligently to promptly file its Annual Report in order to once again comply 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 of Carbon Revolution Pty Ltd, an early stage growth company that successfully manufactures, markets and manufactures carbon fiber wheels. the global automotive industry. The Company has progressed from single prototypes to designing and manufacturing lightweight cars and SUVs in the high performance, premium and luxury segments, for the world's most famous automotive brands. Carbon Revolution creates important and sustainable technologies for the industry that provide lightweight wheel technology to car manufacturers around the world.
For more information, visit carbonrev.com.
Forward-Looking Statements
All statements other than statements of historical fact contained in this communication are forward-looking statements. Forward-looking statements can generally be identified by the use of words such as “believe,” “may,” “will,” “anticipate,” “continue,” “expect,” “think,” “anticipate,” “should,” “will,” ” plan,” “project,” “estimate,” “estimate,” “potential,” “seem,” “want,” “future,” “vision,” “goal” or other similar expressions (or bad translations of those words or expressions ) predicts or they reflect 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 of the continued listing of Carbon Revolution's common shares and securities on Nasdaq, the Company's ability to file an Annual Report and regain compliance with Nasdaq Listing Rule 5250(c ) (1), future financial performance, business strategies, financials and expectations of the Company's business are based on these statements to various assumptions, whether identified or not identified in this connection, and the current expectations of the Carbon Revolution management and are not assumptions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and should not be relied upon by any investor as a guarantee, warranty, prediction or definitive statement of fact or probability. Actual events and conditions are difficult or impossible to predict and may differ from such estimates, and such differences may be material. Many real events and situations are beyond the control of the Carbon Revolution.
These forward-looking statements are subject to a number of risks and uncertainties, including (i) the ability to maintain a listing of Carbon Revolution's securities on Nasdaq or any exchange on which such securities may be listed in the future; (ii) failure to understand the benefits of being listed on a US securities exchange and publicly traded in the United States; (iii) Carbon Revolution's assets, including its ability to pay its obligations and issue equity, pay for reinvestment or obtain financing at all or on acceptable terms, (iv) risks related to its ability to meet financial covenants and other key covenants thereunder. existing financing arrangements or obtaining a waiver or forbearance in complying with such covenants, which could result in an acceleration of default. liability, (v) changes in domestic and foreign business, market, financial, political and legal conditions; (vi) risks associated with the implementation of Carbon Revolution's business strategy and the timing of expected business roles; (vii) competitive effects on Carbon Revolution's future business and the combined company's ability to grow and manage growth, establish and maintain relationships with customers and retain management and key personnel; (viii) risks related to domestic and international political and macroeconomic uncertainties, including 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 the pandemic and government responses to any of the above risks; (xi) risks related to the Carbon Revolution business; (xii) changes in laws and regulations; and (xiii) those matters discussed in Carbon Revolution's documents filed with the SEC, including the Shell (LON: ) Company's Report on Form 20-F.
If any of these risks occur or Carbon Revolution's forecasts prove incorrect, actual results could differ materially from the results expressed in these forward-looking statements. There may be additional risks that Carbon Revolution is not currently aware of or that Carbon Revolution currently believes are material that could cause actual results to differ materially from those contained in forward-looking statements. In addition, forward-looking statements reflect Carbon Revolution's expectations, plans or estimates of future events and opinions as of the date of this communication. Carbon Revolution expects that subsequent events and developments will cause Carbon Revolution's assessment to change. However, while Carbon Revolution may choose to update these forward-looking statements in the future, Carbon Revolution disclaims any obligation to do so, except as 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 on forward-looking statements.
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