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- Carbon Revolution (CBR) has completed the institutional component of an entitlement offer, as well as an institutional placement
- The company raised $31.9 million in the institutional entitlement offer and $41.6 million in the placement, for a combined $73.5 million
- Carbon Revolution will open the retail component of the entitlement offer on April 30, to raise an additional $21.5 million
- The combined proceeds will be used to fund phase one construction of the company’s first Mega-line manufacturing system
- Despite the funds raised thus far, Carbon Revolution is down 22.13 per cent and trading at $1.83 per share
Carbon Revolution (CBR) has completed the institutional component of an entitlement offer, as well as an institutional placement.
The company, which manufactures and sells carbon fibre wheels, recently announced plans for an equity raising for $95 million. The equity raising would consist of the institutional and retail components of an entitlement offer and an institutional placement.
Carbon Revolution has raised $31.9 million through the institutional entitlement offer, and $41.6 million in the placement, for a combine total of $73.5 million. The company’s institutional offer had a take-up rate of 90.3 per cent by eligible institutional shareholders.
The institutional placement was also successful, receiving demand from both existing and new investors.
Carbon Revolution will open the retail component of its entitlement offer on April 30, to raise an additional $21.5 million. This will bring the company’s total proceeds from the equity raising to the desired goal of $95 million.
The combined proceeds will be used to fund phase one construction of Carbon Revolution’s first Mega-line manufacturing system.
Carbon Revolution’s CEO, Jake Dingle, thanked the company’s institutional shareholders for their support.
“Phase 1 of Mega-line is expected to provide an additional circa 75,000 wheels per annum capacity and is underpinned by the expected volume from the four new OEM formal agreements to initiate detailed design and engineering,” he said.
“The expected step change in production scale and economics from the Mega-line will support the company’s pathway towards profitability,” he added.
The proceeds of Carbon Revolution’s equity raising, combined with additional working capital financing arrangements, are expected to provide enough funding for the company to reach cash flow breakeven.
Despite completion of the company’s institutional entitlement offer and placement, Carbon Revolution is down 22.13 per cent, trading at $1.83 per share at 11:25 am AEST.
