Carbon Revolution to merge, to be US listed

Carbon fibre road wheel manufacturer Carbon Revolution is to merge with a US entity, being recapitalised and listed in the US in the process and, potentially, ending up majority US owned.

The Geelong company, whose shares have been lagging on the ASX, is to merge with special purpose acquisition company Twin Ridge Capital Acquisition Corp.

The combined company will have an estimated post-transaction equity valuation of approximately $461 million, including about $214 million of cash held in TRCA’s trust account, assuming no redemptions from TRCA’s trust account.

In addition, the Company has secured $60 million from a committed equity facility.

Carbon Revolution’s shares had been suspended from trading on the ASX, with the transaction meaning that Australian shareholders could end up owning as little as 43 percent of the business. The company’s shares were reinstated on the ASX and closed on Wednesday at 19 cents.

However, a spokesman for CBR said that given the nature of the acquisition company, it was likely Australian shareholders would emerge with majority ownership.

The spokesman said the company would remain headquartered at Warun Ponds in Victoria, with CEO Jake Dingle and company executives remaining in Australia.

Major shareholders include technology partner, Geelong’s Deakin University.

Carbon Revolution CEO Jake Dingle said in a statement: “We see an enormous addressable market for Carbon Revolution’s disruptive efficiency technology with adoption already underway with major car manufacturers.

“Carbon Revolution’s technology provides an effective next-generation solution to the challenges of transitioning the global automotive industry to new mobility.

“We have a strong track record working with leading OEMs and a world-class team with a passion for our work.”

Dingle called the company’s ‘partnership’ with Twin Ridge a significant milestone and an opportunity for Carbon Revolution to continue to build on its early-mover advantages in next-generation auto technology.”

CBR wheels are seen on 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 more recently GM’s Chevrolet Corvette Z06. Ford has recently announced an additional programme with its 2024 Mustang Dark Horse.

The company has been investing heavily in a mega-line production line to boost output as well as improving the aesthetic qualities of its wheels, which are the only single piece carbon fibre wheel available on the global market.

Their low weight offers significant energy savings, for both IC and electric vehicles.

In a statement Carbon Revolution said: “The Board of Directors of CBR unanimously recommends that CBR shareholders vote in favor of the Scheme, in the absence of a superior proposal and subject to an independent expert concluding in the independent expert’s report (and continuing to conclude) that the Scheme is in the best interests of CBR shareholders.

“Subject to those same qualifications, each member of the CBR Board of Directors and the senior management, which includes two of the founders, intend to vote all of their CBR shares or other securities held or controlled by them in favour of the Scheme. ”

Editor’s note: This story was updated on 1 December to better reflect the post-transaction position of Australian shareholders in the company.

Picture: Carbon Revolution/Waurn Ponds facility