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Carbon Revolution Public Ltd Co (NASDAQ:CREV) announced Friday it has secured $5 million in new funding from Orion Infrastructure Capital (OIC) through the issuance of Series 2025-A2 Notes, according to a statement based on a SEC filing.
The transaction is part of a broader amendment to the company’s existing Securities Purchase Agreement with OIC, allowing for up to $7 million in new debt to be issued in two tranches. The first tranche of $5 million was funded Friday, while the release of the remaining $2 million is subject to mutual agreement and could occur no earlier than March 31, 2026.
In connection with the funding, OIC received new warrants entitling it to purchase 5% of Carbon Revolution’s ordinary shares on a fully diluted basis. If the second tranche is funded, OIC’s total warrants would represent approximately 68% of the company’s outstanding shares, up from 61% previously.
The Series 2025-A2 Notes were issued under a Fifth Supplemental Indenture, which also suspends cash interest payments through June 30, 2026, and defers amortization payments until January 2027. The notes will bear interest as specified in the agreement, and an exit premium will be due under certain conditions such as redemption, sale, or maturity.
The company reported approximately $8.8 million in unrestricted cash and $2.4 million in restricted cash as of Friday, after accounting for legal and transaction costs deducted from the proceeds.
Carbon Revolution disclosed it continues to experience lower-than-expected demand for certain programs, particularly in the electric vehicle segment, including the early cancellation of two programs by a customer. The company is pursuing claims related to these cancellations.
Additionally, Carbon Revolution stated it is not currently in compliance with certain Nasdaq continued listing requirements and has submitted a compliance plan for review. The Nasdaq staff may grant an exception until November 26, 2025.
The company indicated it may need to secure additional funding in the near term and is evaluating other strategic and financing options.
All information is based on a press release statement and the company’s SEC filing.
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