Carbon Revolution plc received a $5 million tranche of senior secured notes from Orion Infrastructure Capital (OIC) as part of an up‑to‑$7 million funding agreement. The company issued penny warrants to OIC for 5 % of its shares.
The tranche follows the July 25, 2025 announcement of the final $5 million release from a $25 million facility that was part of a larger $110 million facility secured in November 2023. The company had also secured a $25 million financing agreement in June 2024 and a $70 million investment in November 2023.
A second $2 million tranche is contingent on agreement and will be released no earlier than March 31, 2026. The funding includes a partial payment‑in‑kind for interest until July 2026 and a deferral of principal repayments to January 2027, easing near‑term cash outflows.
Carbon Revolution also disclosed the cancellation of two electric‑vehicle wheel programs that were expected to generate significant volumes. The cancellations reflect a broader slowdown in EV demand and could reduce future revenue. Management said the company is pursuing claims against the customers and is actively seeking additional financing to offset the loss and maintain operations.
The company reported record revenue of $47.3 million for fiscal 2024, up 87 % year‑over‑year, but posted a full‑year loss of $146.4 million versus $52.5 million a year ago. Gross, operating and net margins were 0 %, and free cash flow margin was –94.99 %. The company remains non‑compliant with Nasdaq listing requirements and has a compliance plan with a deadline of November 26, 2025.
Carbon Revolution is a Tier 1 OEM supplier and the leading global manufacturer of lightweight advanced technology carbon‑fiber wheels. The company’s technology is positioned to benefit from electrification, but the recent program cancellations and financial challenges underscore the headwinds it faces in the EV market.
The issuance of penny warrants for 5 % of shares and the potential second tranche could increase OIC’s ownership stake and dilute existing shareholders.
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