Carbon Revolution Provides Update on Strategic Transaction and Funding Efforts

Rhea-AI Summary

Carbon Revolution (OTC:CREVF) is in advanced discussions to complete a strategic transaction or secure additional funding. The company said certain secured lenders may convert debt into equity of Carbon Revolution or its subsidiary, potentially becoming all or a substantial majority of outstanding equity.

Such a conversion is expected to materially and substantially impair the value of existing ordinary shares. Execution depends on intercreditor negotiations, timing and satisfaction of conditions. The company expects to announce transaction terms and an implementation timetable within the next several weeks.

Positive

• Secured lenders engaged in advanced negotiations
• Company pursuing strategic transaction and alternative funding
• Anticipated public announcement within the next several weeks

Negative

• Debt-to-equity conversion could constitute a substantial majority of equity
• Transaction is expected to materially and substantially impair ordinary share value
• Execution contingent on intercreditor negotiations and condition satisfaction

Market Reality Check

Price: $0.4021 Vol: Volume 668,695 is about 1...

high vol

$0.4021 Last Close

Volume Volume 668,695 is about 11.15x the 20-day average of 59,982, indicating unusually heavy trading before this update. high

Technical Shares at 0.4021 are trading below the 200-day MA of 3.26, reflecting prolonged weakness.

Peers on Argus

CREV fell 63.45% while peers showed modest, mixed moves (e.g., FRSX up 2.3%, WKS...

2 Up

CREV fell 63.45% while peers showed modest, mixed moves (e.g., FRSX up 2.3%, WKSP up 3.85%, REE down 6.28%), pointing to a company-specific reaction to capital structure stress rather than a broad Auto Parts move.

Historical Context

3 past events · Latest: Feb 06 (Negative)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Feb 06	Nasdaq delisting notice	Negative	-63.5%	Nasdaq delisting determination over equity, filing failures, and strategic deal doubts.
Nov 07	Nasdaq non-compliance	Negative	-28.5%	Nasdaq non-compliance letter for equity shortfall and late Form 20-F filing.
Oct 31	Funding and program update	Negative	-3.1%	New OIC funding alongside EV program cancellations and reduced revenue forecasts.

Pattern Detected

Recent news has centered on listing non-compliance, funding stress, and strategic uncertainty, each followed by significant negative price reactions, suggesting a pattern of sharp selloffs on adverse regulatory and financing developments.

Recent Company History

Over the past months, Carbon Revolution has repeatedly highlighted serious listing and liquidity pressures. On Feb 06, 2026, it disclosed a Nasdaq delisting determination tied to missed filings and insufficient market value, with shares dropping 63.45%. Earlier, on Nov 07, 2025, a non-compliance letter for equity and reporting deficiencies preceded a 28.5% decline. An Oct 31, 2025 update combined new OIC funding with EV program cancellations and lower revenue forecasts. Today’s strategic-transaction update continues this trajectory of distress-driven announcements.

Market Pulse Summary

This announcement outlines advanced negotiations for a strategic transaction in which secured lender...

Analysis

This announcement outlines advanced negotiations for a strategic transaction in which secured lenders may convert debt into equity expected to represent all or a substantial majority of outstanding shares, materially impairing existing ordinary shares. It follows prior updates on delisting risks, funding challenges, and weakened demand. Investors may focus on the final transaction terms, treatment of different stakeholder groups, and the disclosed implementation timetable expected within the next several weeks.

Key Terms

secured lenders, equity securities, wholly-owned subsidiary

3 terms

secured lenders financial

"The Company is currently in advanced discussions with its secured lenders regarding a transaction"

Secured lenders are banks or other creditors who make loans backed by specific company assets—such as property, equipment, inventory, or accounts receivable—that act like a safety net if the borrower can’t pay. For investors this matters because secured lenders have a stronger claim on those assets than unsecured creditors, which usually means lower risk and lower interest costs for the borrower and clearer expectations about who gets paid first if the company faces financial trouble; think of it like a lender holding the title to a car until the loan is repaid.

equity securities financial

"result in certain secured lenders converting their debt into equity securities of the Company"

Equity securities are financial instruments that represent ownership shares in a company, like owning a slice of a pie that gives you a claim on its assets and future profits. They matter to investors because ownership can provide returns through price appreciation and occasional profit distributions, and may include voting power to influence company decisions, so their value reflects the firm’s performance and investor expectations.

wholly-owned subsidiary financial

"equity securities of the Company and / or its wholly-owned subsidiary, Carbon Revolution Pty Ltd"

A wholly-owned subsidiary is a company whose entire ownership is held by another company, called the parent, so the parent controls all shares, board appointments and major decisions. For investors this matters because the subsidiary’s profits, losses, assets and liabilities are treated as part of the parent’s financial picture, affecting valuation and risk exposure — imagine a parent owning a single storefront outright and consolidating its receipts and bills into the parent’s books.

AI-generated analysis. Not financial advice.

GEELONG, Australia, March 09, 2026 (GLOBE NEWSWIRE) -- Carbon Revolution plc (OTC Pink: CREVF) (the “Company”), a Tier 1 OEM supplier and the leading global manufacturer of lightweight advanced technology automotive carbon fiber wheels, today provided an update on its efforts to execute and complete a strategic transaction with one or more potential counterparties or to obtain additional funding.

The Company is currently in advanced discussions with its secured lenders regarding a transaction that would result in certain secured lenders converting their debt into equity securities of the Company and / or its wholly-owned subsidiary, Carbon Revolution Pty Ltd, which are expected to constitute all or a substantial majority of the outstanding equity securities. Such a transaction is expected to materially and substantially impair the value of the Company’s outstanding ordinary shares. The execution of definitive documentation for such transaction and its implementation is subject to continued intercreditor negotiations and finalization of the timing and satisfaction of certain conditions.

The Company expects to announce the terms of such transaction with an anticipated timetable for its implementation, and the impact of such transaction on the Company’s stakeholders, within the next several weeks.

About Carbon Revolution plc

Carbon Revolution plc (OTC Pink: CREVF) is the parent of Carbon Revolution Pty Ltd, an early-stage growth company which has successfully innovated, commercialized and industrialized the advanced manufacture of carbon fiber wheels for the global automotive industry. The Company has progressed from single prototypes to designing and manufacturing lightweight wheels for cars and SUVs in the high performance, premium and luxury segments, for the world’s most prestigious automotive brands. Carbon Revolution is creating a significant and sustainable advanced technology business that supplies its lightweight wheel technology to automotive manufacturers around the world.

For more information, visit carbonrev.com

Forward Looking Statements

All statements other than statements of historical facts contained in this communication are forward-looking statements. Forward-looking statements may generally be identified by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target” or other similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the Company’s plans for a strategic or financing transaction and the impact thereof. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Carbon Revolution’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from such assumptions, and such differences may be material. Many actual events and circumstances are beyond the control of Carbon Revolution.

These forward-looking statements are subject to a number of risks and uncertainties, including (i) failure to realize the benefits of being publicly-traded in the United States; (ii) the ability of the Company to reach agreement with its creditors, customers and other stakeholders on the terms of such transaction and the implementation thereof; (iii) Carbon Revolution’s liquidity, including its ability to pay its obligations and to issue equity, refinance its indebtedness or otherwise obtain financing at all or on acceptable terms, (iv) risks related to its ability to meet financial covenants and other key covenants under existing financing arrangements, (v) changes in domestic and foreign business, market, financial, political and legal conditions; (vi) risks related to the rollout of Carbon Revolution’s business strategy and the timing of expected business milestones; (vii) the effects of competition on Carbon Revolution’s future business and the ability of the combined company to grow and manage growth, establish and maintain relationships with customers and retain its management and key employees; (viii) risks related to domestic and international political and macroeconomic uncertainty including tariffs and trade policy and the Russia-Ukraine and Middle Eastern conflicts; (ix) the outcome of any legal proceedings that may be instituted against Carbon Revolution; (x) the impact of pandemic and governmental responses on any of the foregoing risks; (xi) risks related to Carbon Revolution’s industry; (xii) changes in laws and regulations; and (xiii) those factors discussed in the documents Carbon Revolution filed with the SEC, including the Annual Report on Form 20-F for the financial year ended June 30, 2024.

If any of these risks materialize or Carbon Revolution’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Carbon Revolution does not presently know or that Carbon Revolution currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Carbon Revolution’s expectations, plans or forecasts of future events and views as of the date of this communication. Carbon Revolution anticipates that subsequent events and developments will cause Carbon Revolution’s assessments to change. However, while Carbon Revolution may elect to update these forward-looking statements at some point in the future, Carbon Revolution specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing Carbon Revolution’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

For further information, please contact:

Investors
Investors@carbonrev.com

Media
Media@carbonrev.com

FAQ

What strategic transaction is Carbon Revolution (CREV) negotiating with its lenders?

They are negotiating a debt-to-equity conversion that would issue equity to secured lenders. According to the company, discussions would convert secured lender debt into equity of Carbon Revolution or its subsidiary, potentially creating a new controlling equity position for those lenders.

How would the proposed lender conversion affect CREV ordinary shares?

The conversion is expected to materially and substantially impair the value of existing ordinary shares. According to the company, secured lenders converting debt into equity could become a substantial or majority equity holder, diluting current shareholders and reducing per-share value.

When will Carbon Revolution (CREV) announce the terms and timetable for the transaction?

The company expects to announce terms and a timetable within the next several weeks. According to the company, final execution depends on ongoing intercreditor negotiations, timing, and satisfaction of specified conditions before definitive documentation is completed.

Does the currently proposed transaction guarantee lenders will own the majority of CREV equity?

No guarantee exists; lenders are expected to potentially constitute a majority but final outcomes are not assured. According to the company, conversion would be subject to intercreditor negotiations and completion of conditions before any definitive ownership percentages are fixed.

What should CREV shareholders consider while the strategic transaction is pending?

Shareholders should prepare for potential significant dilution and value impairment to ordinary shares. According to the company, the transaction could result in secured lenders holding most equity, and completion depends on negotiations and satisfaction of outstanding conditions.