Australian carbon-fiber wheel manufacturer Carbon Revolution has provided clarity on its financial standing following recent inconsistencies in market data reporting. After merging with SPAC Twin Ridge Capital Acquisition Corporation and debuting on NASDAQ under the ticker CREV, the company announced its cash position and fully diluted share count.
In a recent update, Carbon Revolution disclosed that its market capitalization is approximately $97.2 million, based on a closing share price of $41 and 2.372 million fully diluted shares. This figure includes about 1.875 million currently outstanding shares and around 0.496 million shares issuable upon exercise of warrants from Orion Infrastructure Capital (OIC). This clarification comes as a sharp contrast to the $1.3 billion market capitalization previously reported by CNBC.
The company also confirmed a cash balance of $79.0 million, with $44 million of this being restricted cash. These details were shared ahead of CEO Jake Dingle and CFO Gerard Buckle (NYSE:BKE)'s scheduled appearance at the Craig-Hallum Alpha Select Conference in New York City on November 16, where they are expected to present an investor presentation posted on the company's IR site.
Carbon Revolution's business expansion has been bolstered by a significant initial investment from OIC as part of a potential $110 million facility. The investment structure includes an initial $35 million, a $60 million Committed Equity Facility from Yorkville Advisors, and an additional $35 million held in escrow pending the achievement of 2024 milestones. A further $40 million could be accessed from OIC’s Structured Equity Facility upon meeting growth milestones and committee approval.
Before its NASDAQ listing, the Australian government granted Carbon Revolution a $A12 million for its Geelong production facility, reflecting confidence in the company's innovative approach to manufacturing lightweight wheels. The board, featuring former executives from General Motors (NYSE:GM) and Ford (NYSE:F), has secured partnerships for 18 vehicle programs with six global OEMs, including prestigious brands like Renault (EPA:RENA), Ferrari (NYSE:RACE), and Jaguar Land Rover.
Investors have shown strong interest since the listing, with shares initially opening at $7.45 and peaking at $197.99 before stabilizing around $90. The company's transparent update aims to provide investors with accurate information as it continues to navigate its post-listing phase on the global market.
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