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- Carbon fibre wheel manufacture Carbon Revolution (CBR) has entered a trading halt on the back of a $95 million equity raise and its third quarter report
- Following a difficult first half, which was significantly impacted by COVID-19, the company has managed to increased revenue in the third quarter
- Quarterly revenue was $9 million, a 61.2 per cent increase on the second quarter and a 16.6 per cent decrease from the previous corresponding period
- Additionally, Carbon Revolution is looking to raise $95 million to commence construction of phase one of the first Mega-line
- The Mega-line is expected to provide an additional capacity of around 75,000 wheels per annum
- Under the halt, Carbon Revolution shares will be paused until Monday, April 26, or when the capital raise is complete
- Company shares last traded at $2.35 on April 22
Carbon Revolution (CBR) has entered a trading halt on the back of a $95 million equity raise and its third quarter report.
Following a difficult first half, which was significantly impacted by COVID-19, the company has managed to increased revenue in the third quarter.
Quarterly revenue was $9 million, a 61.2 per cent increase in the second quarter and a 16.6 per cent decrease from the previous corresponding period.
Carbon Revolution creates carbon fibre wheels for the global automotive industry, its wheels are used on some of the world’s best cars.
Over the three months, 3134 wheels were sold, a 58.9 per cent increase from the second quarter and 16.2 per cent decrease from this time last year.
At the end of the period, the company had a $13.3 million cash balance.
Additionally, Carbon Revolution is looking to raise $95 million to commence construction of phase one of the first Mega-line.
The Mega-line represents the next phase of the company’s production process to full industrialisation. The Mega-line will include fully automated advanced manufacturing cells, which are expected to deliver high volumes with dramatically reduced labour inputs.
Developed by the company and its partners in Australia, the Mega-line will use state of the art technologies and will supply them to the global automotive market.
The equity raise includes an entitlement offer of 1-for-4.38 pro-rata to raise $53.5 million and a $41.6 million placement.
Under the entitlement offer, shareholders will be able to subscribe for one new share for every 4.38 existing share owned.
Shares will be issued at $1.60 each, which is a 31.9 per cent discount to the last closing price of $2.35.
Construction of the phase one is expected to take around 18 months.
Once completed, the Mega-line is expected to provide an additional capacity of around 75,000 wheels per annum. Interestingly, the labour hours per wheel is expected to be reduced from around 17 hours to below 10 hours.
“Carbon Revolution is excited to begin this next chapter in our development as a company,” Chair James Douglas said.
“I believe that commencing construction of Phase 1 of Mega-line represents the most significant operational decision for Carbon Revolution in its history,” he added.
Under the halt, Carbon Revolution shares will be paused until Monday, April 26, or when the capital raise is complete.
Company shares last traded at $2.35 on April 22.
