Carbon Revolution Limited (NASDAQ: CREV) shares experienced a substantial surge on Monday, ascending by an impressive 197.99% to ultimately close at $87.37. This remarkable upturn in Carbon Revolution stock value can be attributed to a pivotal equity maneuver.
Carbon Revolution (CREV) garnered an initial investment of $70 million from a Structured Equity Facility, with a potential allocation of up to $110 million. The source of this substantial investment can be traced back to fund vehicles associated with Orion Infrastructure Capital (“OIC”), a prominent player in the infrastructure investment arena. Of the initial $70 million capital injection, $35 million is now at the company’s immediate disposal, while the remaining $35 million has been deposited into an escrow account, awaiting release upon the satisfaction of specific milestones.
It’s worth noting that Carbon Revolution had previously announced its engagement in a Structured Equity Facility with OIC back in September. This momentous announcement came to fruition following the finalization of the business combination and the commencement of trading on Nasdaq, which began on November 3, 2023. This transition involved a significant share consolidation from NYSE: TRCA to Nasdaq: CREV, with a 10-to-1 exchange ratio at the time of the business combination’s closure.
As a result of this consolidation, a CREV price of $100.00 now mirrors a TRCA price of $10.00 per share. Consequently, a CREV price of $78.70 per share is indicative of the closing price of TRCA at $7.87 per share on the day preceding the business combination’s finalization. The total capital available to the company in connection with the concluded business combination is a substantial $95 million.
This sum encompasses the initial $35 million in gross proceeds from OIC’s investment and an additional $60 million Committed Equity Facility provided by Yorkville Advisors. The remaining $35 million from OIC’s initial investment has been placed in an escrow account, with the anticipation of release as certain milestones are met, which is projected to occur throughout the calendar year 2024. Furthermore, an extra $40 million remains potentially accessible under OIC’s $110 million Structured Equity Facility, contingent upon the company’s achievement of future growth milestones and approval from OIC’s investment committee.