Carbon Revolution Secures Final Release of $5 Million from OIC and Final $0.4 Million Reserve Release from Existing Lenders

Rhea-AI Summary

Carbon Revolution (NASDAQ:CREV), a leading manufacturer of carbon fiber wheels, has secured the final $5 million release from Orion Infrastructure Capital (OIC), completing the full disbursement of their $25 million facility announced in December 2024. Additionally, existing noteholders from the $60 million PIUS loan have released the final $400,000 in reserves.

The company will issue penny warrants to OIC and existing noteholders representing 5% of outstanding shares. However, CREV has revised revenue forecasts downward due to declining wheel orders and expects to need additional funding within the next quarter due to revenue forecast reductions and delayed customer payments.

Positive

• None.

Negative

• Revenue forecasts revised downward due to declining wheel orders
• Company needs additional funding within next quarter
• Delayed customer payments affecting financial position
• 5% share dilution through penny warrants issuance
• No assurance of securing additional funding on satisfactory terms

Insights

Financial Analyst

Carbon Revolution secured final funding tranches but faces revenue decline and will need additional capital within next quarter.

The release of the final $5 million from OIC completes their $25 million facility, while existing lenders released the remaining $400,000 in reserves. In exchange, the company issued penny warrants representing 5% of outstanding shares to these creditors. Both lender groups have also agreed to accept partial non-cash interest payments for approximately six months - a concerning sign of cash conservation.

The most significant red flag is Carbon Revolution's explicit statement that despite completing this $27 million funding round, they now expect to need additional capital within the next quarter. This immediate timeline suggests severe cash flow challenges, especially concerning given they've simultaneously revised revenue forecasts downward due to declining customer orders and delayed customer payments.

The company's decision to slow expansion plans signals management's acknowledgment of these financial constraints. While they mention discussions with OIC for potential additional funding and exploration of other financing options, they provide the critical caveat that there's no assurance of securing funding on satisfactory terms, if at all.

This press release effectively communicates that despite completing their previously announced funding round, Carbon Revolution's financial position has deteriorated from their earlier projections, necessitating immediate additional capital and potentially placing them in a vulnerable negotiating position with potential funding sources.

GEELONG, Australia, July 25, 2025 (GLOBE NEWSWIRE) -- Carbon Revolution plc (Nasdaq: CREV) (the “Company”), a Tier 1 OEM supplier and the leading global manufacturer of lightweight advanced technology automotive carbon fiber wheels, today announced that Orion Infrastructure Capital ("OIC") has released US$5 million of the US$25 million facility announced on December 23, 2024. As a result of this release, the full US$25 million facility has now been released. Concurrent with this US$5 million tranche, lenders under the US$60 million PIUS loan entered into in May 2023 (“Existing Noteholders”) have also released the final US$400,000 of existing loan reserves, taking reserves released to US$2 million. In connection with this funding tranche, the Company will issue to OIC and Existing Noteholders, penny warrants to purchase an aggregate number of shares equal to 5.0% of the Company’s shares outstanding.

Following this combined US$27 million of funding, both OIC and the Existing Noteholders have agreed to partial payment in kind, in lieu of cash, for certain interest payments for a period of approximately six months.

The Company has a number of new programs entering, or expected to enter, production in the near-term, however as a result of a decline in the volume of wheels ordered or projected to be ordered by certain customers, the Company has revised its revenue forecasts downward and slowed its short-term expansion plans. As a result of the decline in revenue forecasts and delays in receipt of certain customer payments, the Company expects that it may need to obtain additional funding within the next quarter. The Company is in discussions with OIC regarding potential additional funding, including access to the remaining funding under the Securities Purchase Agreement for which the amounts and conditions to the receipt thereof remain subject to future negotiation, and is also exploring other potential financing transactions. The Company makes no assurances that it will be able to secure any such funding on satisfactory terms, or at all.

About Carbon Revolution plc

Carbon Revolution plc (Nasdaq: CREV) (the “Company” or “Carbon Revolution”) 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, the future financial performance, business strategies, financings and expectations for the Company’s business. 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) the ability to maintain the listing of Carbon Revolution’s securities on Nasdaq or any other exchange on which such securities may be listed in the future; (ii) the failure to realize the benefits of being listed on a U.S. securities exchange and publicly-traded in the United States; (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 or to obtain waivers or forbearance from compliance with such covenants, which could result in the acceleration of outstanding indebtedness, (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 the Russia-Ukraine and conflicts in the Middle East; (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 Carbon Revolution’s Annual Report on Form 20-F.

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 is the total amount of funding Carbon Revolution (CREV) has received from the OIC facility?

Carbon Revolution has received a total of $25 million from the OIC facility, with the final $5 million tranche just released.

How much additional reserve funding did CREV receive from existing noteholders?

CREV received a final release of $400,000 from existing noteholders, bringing total reserves released to $2 million.

Why does Carbon Revolution (CREV) need additional funding in the next quarter?

CREV needs additional funding due to downward revised revenue forecasts, declining wheel orders, and delays in customer payments.

What dilution impact will the new warrants have on CREV shareholders?

The penny warrants issued to OIC and existing noteholders will represent 5% of the company's outstanding shares.

How is Carbon Revolution (CREV) addressing its immediate financing needs?

CREV is in discussions with OIC for additional funding and exploring other financing options, though there's no guarantee of securing funding on satisfactory terms.