Carbon Revolution Secures US$60 Million Loan

Carbon Revolution Limited (“CBR”, “Carbon Revolution” or the “Company”), a Tier 1 OEM supplier and a leading global manufacturer of lightweight advanced technology carbon fiber wheels, announced the establishment of a US$60 million debt financing arranged and insured by PIUS Limited LLC, a Gallagher company, and its affiliates (the “Financing”). Net proceeds from the four-year program will be partly used to repay key existing lenders, with the remainder of the capital used to fund further Mega-line automation, capacity expansion, and provide general working capital to support the Company’s forecast growth. The Financing will be secured by the group’s assets, including its intellectual property.

“The funds raised in this financing will progress our ongoing capacity build out, further automation of the facility to reduce our cost structure, and provide us with working capital to support our growth forecasts, without dilution,” said Carbon Revolution CEO and Managing Director, Jake Dingle. “As the automotive industry shifts rapidly to electrification we are well-positioned to capture this accelerating demand.”

The Financing comes at a fixed interest rate of 8.5% per annum with interest-only payments for the first 18 months. The Financing will assist with the delivery of the 11 lightweight wheel programs currently awarded to Carbon Revolution by four leading global automakers including Ford Motor Company, General Motors Company and Ferrari N.V, as well as three additional programs under engineering contracts.

Carbon Revolution is focused on further expanding its footprint in the rapidly growing market for electric vehicles (EVs). The Company’s wheels weigh up to 50% less than comparable aluminum wheels, and can provide up to 5% to 10% increase to EV vehicle range¹.

Carbon Revolution’s wheels significantly reduce unsprung mass which greatly improves efficiency, while also helping leading global automakers to comply with the Corporate Average Fuel Economy (CAFE) targets set by the National Highway Traffic Safety Administration (NHTSA). These benefits have contributed to the award of two OEM EV wheel programs in recent months.

The Company initially penetrated the performance and premium end of the market with wheel programs for vehicles including Ford’s GT and Shelby Mustang GT350R and GT500, Ferrari’s 488 Pista, F8 Tributo, SF90 Stradale, 812 Competizione and 296 GTB, Renault’s Megane RS Trophy R, and GM’s Chevrolet Corvette Z06 and E-Ray. As the global automotive industry shifts to electric power, Carbon Revolution is well positioned to capture OEM demand for weight-saving efficiency technologies.