ASX penny stock Carbon Revolution Ltd (ASX: CBR) is having a smashing day on the market today.
The Carbon Revolution share price closed at 12.5 cents yesterday and soared 84% to an intraday high of 23 cents this morning. At the time of writing, it's up 32% to 16.5 cents a share.
In contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.57% in the red in late afternoon trade.
Let's take a look at what is going on with the Carbon Revolution share price.
Why is this ASX penny stock rising?
Carbon Revolution, based in Geelong, makes carbon fibre wheels for use in the automotive industry worldwide.
Investors appear to be buying up Carbon Revolution shares after the company secured US$60 million via a new debt program.
This will deliver net new funding for mega-line automation and capacity expansion, plus general corporate and working capital costs of up to US$37 million.
Carbon Revolution has been working with underwriter PIUS Limited to secure this multi-million dollar financing.
The funding means the company remains funded up to and after its proposed merger with Twin
Ridge Capital Acquisition Corp.
Commenting on the news, Carbon Revolution CEO Jake Dingle said:
Working with PIUS and our merger partners at Twin Ridge Acquisition Corp. has enabled us to access a specialised form of non-dilutive financing that leverages the strong base of intellectual property that we have developed through extensive research and development, and technology commercialisation, over the past fifteen years.
Carbon Revolution is expected to complete the merger with Twin Ridge Capital by July 2023.
In the third quarter of FY23, Carbon Revolution commenced a new wheel program and resumed production of the Corvette ZO6 wheel
The company touts that it makes light carbon fibre wheels for some of the "world's best and most sought after" cars.
Share price snapshot
The Carbon Revolution share price has shed 64% in the last year. However, in the last week, it has rocketed 26%.
This ASX penny stock has a market capitalisation of about $36 million.