Twin Ridge Capital Acquisition Corp. (NYSE: TRCA) witnessed a remarkable surge of 47.83%, with its stock currently standing at $9.86 at last check. This notable upswing in Twin Ridge’s stock value, while seemingly unrelated to any prominent news, can be attributed to recent strategic developments.
Twin Ridge has recently declared that the scheme of arrangement concerning its merger with Carbon Revolution has gained legal validity. Consequently, the quotation of Carbon Revolution shares on the ASX was suspended at the close of business last Thursday. Carbon Revolution Limited holds the distinction of being a Tier 1 original equipment manufacturer (OEM) supplier, and it stands as a premier global producer of state-of-the-art lightweight carbon fiber wheels.
This development followed the unanimous approval of the scheme of arrangement by Carbon Revolution shareholders on October 15, 2023, as well as the formal endorsement of the scheme by the Federal Court of Australia on Wednesday. Twin Ridge Capital Acquisition Corp. shareholders had previously given their endorsement to the business amalgamation on October 12, 2023.
The execution of the scheme of arrangement, slated for October 31, 2023, is contingent on the fulfillment of requisite conditions. Under this arrangement, Carbon Revolution plc is anticipated to emerge as the parent company of Carbon Revolution and commence trading on the Nasdaq Capital Market, utilizing the ticker symbol “CREV,” starting from October 30, 2023.
The attainment of these momentous milestones is set to usher Carbon Revolution into a new phase as a publicly traded entity in the United States. Twin Ridge firmly believes that Carbon Revolution is exceptionally well-situated to leverage the burgeoning demand for its groundbreaking efficiency technology, particularly within the electric vehicle and emerging mobility sector.
Twin Ridge has consistently extended its support to Carbon Revolution in its journey towards becoming a publicly traded company in the United States. This confidence in Carbon Revolution’s prospects is reinforced by its collaboration with six global OEMs, including distinguished names such as Ford Motor Company, General Motors, Renault, Ferrari N.V., and Jaguar Land Rover.
In connection with the upcoming implementation, Carbon Revolution is expected to have access to a substantial capital pool amounting to US$95 million. This encompasses a sum of US$35 million from the structured equity facility, which can reach up to US$110 million, involving two fund vehicles linked with Orion Infrastructure Capital, as well as a US$60 million committed equity facility. The release of the remaining US$75 million under the structured equity facility is contingent upon the company’s achievement of specified future growth milestones.
