Geelong-based advanced manufacturer Carbon Revolution announced an initial investment of USD 70 million (AUD 108.7 million), which will be used to continue expanding the company’s global footprint.
This investment is part of a Structured Equity Facility, which could potentially provide up to USD 110 million in total funding and comes from fund vehicles associated with Orion Infrastructure Capital (OIC), a distinguished infrastructure investment firm.
Jake Dingle, the CEO of Carbon Revolution, expressed his enthusiasm about this development by stating, “The Structured Equity Facility from OIC is a key pillar supporting our long-term business strategy to further expand our global footprint among leading OEMs.”
The initial USD 70 million investment is divided into two parts, with USD 35 million immediately available to Carbon Revolution, while the remaining USD 35 million has been placed in an escrow account, pending the achievement of specific milestones outlined below.
According to Carbon Revolution, this significant financial development follows its entrance into the Structured Equity Facility with OIC in September.
It also coincides with the closure of a business combination and the company’s listing on the Nasdaq stock exchange.
Chris Leary, Investment Partner and Head of Infra Equity at OIC, shared his thoughts on the partnership, saying, “We are thrilled to initiate our capital partnership with Carbon Revolution to support the Company’s continued growth and innovation in automotive efficiency, EV range extension, and overall performance with the funding of the Structured Equity Facility and listing on Nasdaq.”
Carbon Revolution’s stock began trading on 3 November 2023, on Nasdaq after the successful conclusion of the business combination.
This consolidation entailed a 10-to-1 share conversion (from NYSE: TRCA to Nasdaq: CREV) based on the exchange ratio at the time of the combination.
As a result, a CREV share price of $100.00 reflects a TRCA share price of $10.00 per share, and a CREV share price of $78.70 mirrors the closing price of $7.87 per share of TRCA on the day before the merger.
The company’s total available capital in connection with the completed business combination now stands at USD 95 million.
This sum includes the initial USD 35 million investment from OIC, as well as a USD 60 million Committed Equity Facility from Yorkville Advisors (subject to specific conditions mentioned earlier).
The remaining USD 35 million from OIC’s initial investment has been allocated to an escrow account with release milestones anticipated to be met through 2024.
Furthermore, there is an additional USD 40 million accessible under OIC’s $110 million Structured Equity Facility, contingent upon the achievement of future growth milestones and the approval of OIC’s investment committee.
