Carbon Revolution plc announced a new financing agreement with Orion Infrastructure Capital (OIC) for an additional US$25 million. This funding will be released in five tranches, each amounting to US$5 million, contingent upon satisfying specific release conditions. The first of these five funding tranches closed on December 20, 2024.
Concurrently, lenders under the US$60 million PIUS loan, referred to as Existing Noteholders, agreed to release up to US$2 million from existing loan reserves. This release will also occur in five equal tranches of US$400,000, concurrent with the OIC funding tranches. Following this combined US$27 million in additional funding, both OIC and the Existing Noteholders have agreed to partial payment in kind for certain interest payments, in lieu of cash.
This incremental capital, reserve release, and changes to interest terms are intended to support the ongoing liquidity of the business and fund the company's efforts to meet demand from its OEM customers. Carbon Revolution is making substantial investments in capacity and throughput, with several new programs expected to enter production in the near-term. In connection with each US$5 million tranche release, the company will issue penny warrants to OIC and Existing Noteholders to purchase an aggregate number of shares equal to 5.0% of the company's shares outstanding.
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