Carbon Revolution’s Nasdaq Listing Delayed as US Investment Fund Injects $US110 Million

Carbon Revolution, a Geelong-based lightweight wheel manufacturer, has faced a delay in its plans to list on the Nasdaq exchange. This delay comes after Orion Infrastructure Capital, a US investment fund, agreed to invest $US110 million into the company. Orion sees potential upside in Carbon Revolution’s carbon fibre wheels, which are lighter than traditional aluminum wheels and can increase the range of electric vehicles by up to 10%. The investment by Orion has caused a temporary delay in the vote on a deal with US special purpose acquisition company Twin Ridge Capital, which would have paved the way for Carbon Revolution’s move to the US.

The meeting to vote on the deal has been postponed to October 3 to allow shareholders to assess the implications of Orion’s investment. Orion will hold a 19.99% stake in the merged entity. Carbon Revolution has also revised the merger ratio with Twin Ridge, reducing it from 0.0877 shares per Carbon Revolution share, down to 0.064.

Carbon Revolution supplies its lightweight wheels to global car makers, including Ford, General Motors, Renault, Ferrari, and Jaguar Land Rover. The company has a backlog of orders worth $US680 million, with around 50% of those orders coming from electric vehicle manufacturers. However, despite the strong demand, updated forecasts show that Carbon Revolution is projected to make a loss of $2.7 million in 2024. The company’s CEO, Jake Dingle, believes that Orion’s investment will provide the extra capital needed to capture the growing demand for carbon fibre wheels.

In addition to the investment by Orion, Carbon Revolution has appointed four US-based directors to its board, including Bob Lutz, a former vice-chairman of General Motors. The company aims to take advantage of the increasing trend towards electric vehicles and the need for lighter, more efficient wheels.

Source: Simon Evans, Australian Financial Review.