Carbon Revolution Public Limited Co shares are soaring Tuesday after the company announced $25 million in financing to support the ongoing liquidity of its business.

What Happened: Carbon Revolution ( CREV ), a global manufacturer of carbon fiber wheels, said it reached an agreement with Orion Infrastructure Capital for a further $25 million in financing to be released in five $5 million tranches. Existing noteholders have also agreed to release up to $2 million of existing loan reserves in five equal tranches.

In connection with the release of each of the five tranches, Carbon Revolution ( CREV ) will issue to Orion Infrastructure Capital and the lenders penny warrants to purchase 5% of the company’s outstanding shares.

Carbon Revolution ( CREV ) previously drew $70 million of its $110 million funding agreement with Orion Infrastructure Capital. The new $25 million agreement will be drawn from the remaining $40 million under the agreement.

“OIC continues to be a great funding partner for Carbon Revolution ( CREV ), sharing our vision for our world-leading technology,” said Jake Dingle, CEO of Carbon Revolution ( CREV ). “This capital supports the ongoing liquidity of the business and underpins the continued delivery of our production capacity increase and the near-term launch of a number of new OEM programs.”

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Carbon Revolution ( CREV ) also noted that it continues to work to file its annual report “as promptly as practical” in order to regain compliance with Nasdaq listing rules.

It’s worth noting that Carbon Revolution ( CREV ) is considered a low-float stock with just 1.81 million shares available for public trading, according to Benzinga Pro. The company also had a market cap of less than $7.5 million as of Monday's close. Low-float, micro-cap stocks can be extremely volatile, which may help explain some of Tuesday's outsized move.

CREV Price Action: Carbon Revolution ( CREV ) shares were up 158.9% at $10.12 at the time of publication Tuesday, according to Benzinga Pro.