CBR Media/Articles, page-17

Neil and Slick

I won’t reply to both of you but its fair to say your underlying points are the similar, and as always timely with a recent selldown. For those that are aware of the company and their post-IPO story - that is, CBR’s business plan, their growing OEM programs, the economies of scale (wheel volumes) required for sustainable and growing profit, and the role the megaline will play in this - are aware that the investment thesis is still on track, albeit delayed due to external issues.

You blame management, but to me they have managed the recent market and supply chain issues well - and have simply been playing the cards they have been dealt. The impact of covid and semiconductor shortages on customer order volumes (and negative impact on cash flow) have been an unfortunate side-effect to these two issues and are not a result on reduced desire for carbon fibre wheels, or CBR’s manufacturing quality. The thesis for growth of this premium wheel segment is still there - notwithstanding the added benefits to the growing EV market.

Will CBR require another capital raise to complete the megaline? Management have indicated no. CBR are running it close though……. however H2 volumes are expected to be stronger with the Corvette launch, and the unwinding of the semiconductor bottleneck. The megaline is also clearly on track for commissioning, and new programs on-foot.

The price now is crazy and approaching NTA of 0.62. I am taking advantage of this though.