Carbon Revolution (ASX:CBR)
, a supplier of lightwight carbon-fibre wheels to the global automotive industry, has announced the completion of its institutional entitlement offer and placement. It has raised $73.5 million at a price of $1.60 per share.
The retail entitlement offer, to raise an additional $21.5 million, opens on Friday 30 April. Retail shareholders who have a registered address in Australia or New Zealand will be able to subscribe for one new share for every 4.38 fully paid ordinary shares.
The funding will go towards construction of phase 1 of Carbon Revolution's "Mega-line". The Mega-lines are fully automated manufacturing cells that will deliver high volumes with dramatically reduced labour inputs. A full Mega-line is expected to have 150,000 wheels per year of capacity.
CEO Jake Dingle comments, "Phase 1 of Mega-line is expected to provide an additional circa 75,000 wheels per annum capacity and is underpinned by the expected volume from the four new OEM formal agreements to initiate detailed design and engineering. The expected step change in production scale and economics from the Mega line will support the Company’s pathway towards profitability."
Shares in Carbon Revolution (ASX:CBR)
are trading 22.3 per cent lower at $1.825.