Carbon Revolution secures further funding of $5 million from OIC, reports cancellation of two EV wheel programs

Funding Agreement - Carbon Revolution plc has reached an agreement with Orion Infrastructure Capital to provide up to US$7 million in funding, with US$5 million released on October 31, 2025, in exchange for additional senior secured notes [1][2] - The second tranche of US$2 million is contingent upon mutual agreement and is expected to be released no earlier than March 31, 2026 [3] Program Cancellations - The company has canceled two electric vehicle wheel programs due to declining demand in the broader EV market, which was initially expected to contribute significant wheel volumes [4][5] - The company is pursuing claims related to these canceled programs [5] Revenue Forecasts and Compliance - Due to lower than expected demand, the company has revised its revenue forecasts downward and slowed its short-term expansion plans [4][5] - The company is currently not in compliance with certain Nasdaq continued listing requirements and has submitted a compliance plan, awaiting Nasdaq's determination [6] Additional Funding Needs - Despite the recent funding, the company anticipates needing additional funding in the short term and is actively seeking strategic alternatives to be completed within the fiscal year ending June 30, 2026 [7][8] - The need for liquidity is partially dependent on the outcome of customer claims related to the canceled programs [8] Company Overview - Carbon Revolution plc is a leading global manufacturer of lightweight advanced technology automotive carbon fiber wheels, supplying to high-performance, premium, and luxury automotive brands [9]