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GEELONG, Australia - Carbon Revolution plc (NASDAQ:CREV), a manufacturer of lightweight carbon fiber automotive wheels, announced Friday it has secured up to $7 million in additional funding from Orion Infrastructure Capital (OIC) while reporting the cancellation of two electric vehicle wheel programs. The micro-cap company, currently valued at just $9.09 million with shares trading at $4.82, has seen significant price volatility recently with a 12.68% decline over the past week according to InvestingPro data.
The company received an initial $5 million on October 31 in exchange for issuing additional senior secured notes with terms similar to its existing notes. OIC will also receive penny warrants to purchase shares equal to 5% of the company’s outstanding shares. A potential second $2 million tranche could be released no earlier than March 31, 2026, subject to mutual agreement.
As part of the arrangement, OIC and existing noteholders agreed to accept partial payment in kind instead of cash for certain interest payments until July 2026, with principal repayments deferred until January 2027.
Carbon Revolution attributed the two EV wheel program cancellations to weakening demand in the broader electric vehicle market. The company is pursuing claims related to these cancelled programs, which it had expected would contribute substantial wheel volumes.
The company also faces Nasdaq compliance issues, having submitted a plan to regain compliance by the November 26, 2025 deadline. Despite the new funding, Carbon Revolution indicated it may need additional financing in the short term and is exploring other strategic alternatives to be completed within its fiscal year ending June 30, 2026.
"The Company makes no assurances that it will be able to secure any of the aforementioned on satisfactory terms, or at all," the company stated in its press release.
Carbon Revolution supplies carbon fiber wheels to automotive manufacturers in the high performance, premium and luxury segments.
In other recent news, Carbon Revolution Public Ltd Co announced it has secured $5 million in new funding from Orion Infrastructure Capital. This funding comes through the issuance of Series 2025-A2 Notes, as detailed in a statement based on a SEC filing. The transaction is part of a broader amendment to the company’s existing Securities Purchase Agreement with Orion Infrastructure Capital. This agreement allows for up to $7 million in new debt to be issued in two tranches. The first tranche of $5 million was funded recently, while the release of the remaining $2 million is contingent on mutual agreement and cannot occur before March 31, 2026. These developments highlight Carbon Revolution’s ongoing financial strategies and funding activities.
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