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GEELONG, Australia - Carbon Revolution plc (NASDAQ:CREV), a manufacturer of lightweight carbon fiber automotive wheels with a current market capitalization of $5.44 million, has secured an additional $27 million in funding, the company announced today. This capital infusion includes a $5 million tranche from Orion Infrastructure Capital (OIC) as part of a previously announced $25 million facility and a $400,000 release of loan reserves by existing note holders under a $60 million PIUS loan.
The funding is aimed at bolstering the company’s liquidity and supporting its capacity to meet the demands of its OEM customers, with several new programs expected to enter production soon. According to InvestingPro data, the company’s stock has declined over 73% in the past year, while its Financial Health Score stands at a concerning 1.18, labeled as WEAK. The company has now received $20 million of the $25 million facility from OIC and $1.6 million of the up to $2 million agreed reserve release.
In conjunction with the funding, Carbon Revolution will issue penny warrants to OIC and existing note holders, representing 5% of the company’s outstanding shares. Moreover, these financial partners may opt for partial payment in kind for certain interest payments in lieu of cash.
Carbon Revolution, which designs and manufactures advanced carbon fiber wheels for high-performance, premium, and luxury segment vehicles, has grown from producing single prototypes to supplying global automotive brands. With the company’s next earnings report due on May 28, InvestingPro subscribers can access 7 additional key insights and detailed financial metrics to better evaluate the company’s prospects. The company, however, has made no assurances regarding the receipt of the remaining $5 million of the $25 million facility.
The press release also notes Carbon Revolution’s efforts to file its Annual Report promptly to comply with Nasdaq Listing Rule 5250(c)(1). This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties, including maintaining Nasdaq listing, financial performance, business strategies, and the ability to meet financial covenants.
In other recent news, Carbon Revolution has announced the appointment of Donnie Hampton, Jr. as its new Acting Chief Executive Officer and a member of the Board of Directors. Hampton brings over 30 years of experience in the Tier 1 automotive supply sector, having held leadership positions at companies such as Maxion Wheels and Pace Industries. The appointment comes as Carbon Revolution aims to advance the full-scale industrialization of its Geelong facility. Bob Lutz, Chairman of the Board, expressed confidence in Hampton’s ability to guide the company into its next growth phase. Hampton’s predecessor, Jake Dingle, was credited with transitioning the company from an R&D startup to a leading supplier of carbon fiber wheels. Board member Chris Leary highlighted Dingle’s contributions and noted the company’s readiness to accelerate its market presence. Carbon Revolution continues to focus on supplying advanced technology to automotive manufacturers worldwide. The company is keen on expanding its global footprint while maintaining operational excellence.
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