Carbon (ASX:CBR) posts 66% revenue rise in Q1, shares skyrocket

October 31, 2022 01:02 PM AEDT | By Sonal Goyal

Carbon (ASX:CBR) posts 66% revenue rise in Q1, shares skyrocket — Image source: © Yarruta | Megapixl.com

Key highlights of Q1FY23

The company reported a revenue of AU$10.4 million, 66.2% higher than the previous year’s revenue.
The wheel sales volume grew by 78% compared with the prior corresponding period, to 3,739 wheels.
The net cash outflow from operating activities dropped to AU$0.5 million.
The company ended the quarter with a cash balance of AU$10.7 million.
In August, the company reported that the federal government has confirmed the AU$12 million Modern Manufacturing Initiative (MMI) grant. As per the government’s proposed terms, an initial grant payment of AU$4.8 million will be received at the end of 2022, said Carbon Revolution.

Details of the proposed merger with SPAC

As per the contract with the SPAC, Carbon Revolution will be purchased by the SPAC or other acquisition vehicles to create MergeCo. According to the proposed acquisition terms, the company is valued at a premoney enterprise value of US$200 million. After the merger, the company’s shareholders will have 67% ownership in MergerCo.

Post the completion of the transaction, Carbon Revolution will be delisted from the ASX.

The company has stated that there is a risk that this transaction will not occur in the future as a non-binding letter of intent has been signed among the parties.

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