Carbon Revolution plc (Nasdaq: CREV) (“Carbon Revolution” or the “Company”) a Tier 1 OEM supplier and a leading global manufacturer of lightweight advanced technology carbon fiber wheels, today announced that it has received an initial investment of US$70 million from a Structured Equity Facility of up to US$110 million from fund vehicles associated with Orion Infrastructure Capital (“OIC”), a leading infrastructure investment firm. Of the initial investment of US$70 million, US$35 million is immediately available to the Company and the remaining US$35 million was funded into an escrow account, subject to release upon satisfaction of certain milestones as described below.
Carbon Revolution announced in September that it had entered into the Structured Equity Facility with OIC. The announcement of the receipt of the US$70 million of funding described above follows the closing of the business combination and commencement of listing on Nasdaq described below.
Carbon Revolution shares soared 756% in premarket trading.
Closing of Business Combination and Nasdaq Listing
Carbon Revolution plc’s stock began trading on November 3rd 2023 on Nasdaq following the closing of the business combination.
Carbon Revolution effectuated a 10-to-1 share consolidation (NYSE: TRCA to Nasdaq: CREV) through the exchange ratio at closing of the business combination. The result of the 10-to-1 TRCA share consolidation on closing is that a CREV price of $100.00 is reflective of a TRCA price of $10.00 per share, consequently a CREV price of $78.70 per share is reflective of the closing price of $7.87 per share of TRCA on the day prior to closing.
Sources of Capital Following the Funding of the Structured Equity Facility
Total capital available to the Company in connection with the closed business combination is US$95 million, which includes the US$35 million of initial gross proceeds from OIC’s investment and a US$60 million Committed Equity Facility from Yorkville Advisors (as previously disclosed and subject to satisfaction of certain conditions set forth therein). The remaining US$35 million of OIC’s initial investment has been funded into an escrow account with release milestones expected to be achieved through calendar year 2024. An additional US$40 million is available under OIC’s $110 million Structured Equity Facility subject to the Company’s achievement of future growth milestones and to OIC investment committee approval.
“The Structured Equity Facility from OIC is a key pillar supporting our long-term business strategy to further expand our global footprint among leading OEMs,” said Carbon Revolution CEO Jake Dingle.
“We are thrilled to initiate our capital partnership with Carbon Revolution to support the Company’s continued growth and innovation in automotive efficiency, EV range extension and overall performance with the funding of the Structured Equity Facility and listing on Nasdaq,” said Chris Leary, Investment Partner and Head of Infra Equity at OIC.
About Carbon Revolution plc
Carbon Revolution plc (Nasdaq: CREV) is the parent of Carbon Revolution Limited, an Australian technology 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.