Carbon Revolution plc (NASDAQ: CREV) saw its shares advance 5.50% to $5.18 during the latest trading session following the announcement of a notable equity development. The company confirmed that Orion Infrastructure Capital (OIC) has released the remaining US$5 million from the US$25 million facility initially disclosed on December 23, 2024.
Completion of Funding Milestone
The release of this final tranche marks the full deployment of the US$25 million facility. In parallel, lenders of the US$60 million PIUS loan—entered into in May 2023 and referred to as “Existing Noteholders”—have authorized the disbursement of the last US$400,000 in loan reserves. This brings the total reserves released to US$2 million.
Equity Issuance to OIC and Noteholders
In conjunction with this latest funding, Carbon Revolution will issue penny warrants to OIC and Existing Noteholders. These warrants collectively represent the right to acquire shares equal to 5.0% of the company’s total outstanding equity.
The combined funding of approximately US$27 million also includes an agreement from both OIC and the Existing Noteholders to accept partial payment in kind (PIK) for certain interest obligations over the next six months, reducing near‑term cash outflows.
Operational Outlook and Additional Funding Needs
Carbon Revolution has several new wheel programs either commencing or expected to commence production in the near future. However, the company has revised its revenue projections downward due to reduced order volumes from certain customers.
In addition, slower‑than‑expected customer payments have contributed to a cautious near‑term outlook, prompting a temporary scale‑back of expansion activities. Given these updated forecasts and timing of receivables, Carbon Revolution anticipates a potential need for additional funding within the upcoming quarter.
The company is in ongoing discussions with OIC regarding possible supplemental financing, including further access to the remaining commitments under the Securities Purchase Agreement. Terms and conditions of such financing remain under negotiation. Simultaneously, management is evaluating alternative funding strategies to strengthen liquidity and support operational priorities.
