Case Study – ARCC

arcc bus chassis

Axito connects businesses with the resources they need to thrive and grow.

Whether through securing grants, capital raising, or commercialisation, Axito’s team of experienced and proven professionals is passionate about seeing Australian businesses reach their potential and helping companies with innovative ideas breakthrough.

Client Background

Aluminum Revolutionary Chassis Company (ARCC)  

ARRC is making Australia’s zero carbon emission future a reality with their invention of an aluminum bus chassis, capable of being powered by batteries or hydrogen fuel cells, as opposed to environmentally damaging diesel.

As the first of its kind in Australia, ARCC’s innovative design not only has significant environmental benefits but is also cheaper to run.

Currently the majority of buses utilised in Australia are operated using diesel engines in both the public and private sectors. Diesel buses are heavy and inefficient, consume unsustainable fossil fuels and produce carbon emissions. It seems like common sense to switch to electrically operated vehicles. So, why hasn’t Australia already made the transition? The technology simply hasn’t been able to keep up. The sector has been impeded by difficulties with the weight and size of batteries, inertia, and the lack of charging infrastructure in Australia.

To overcome these issues, ARCC looked abroad. Over two years, ARCC worked with the University of Helsinki in their Finite Element Design and Modelling division to troubleshoot issues that had previously stalled the development of this technology. By the end of this process, ARCC had all the resources to proceed to the prototype phase.

ARCC self-funded the development of two 12.5 metre buses utilising their new, state of the art aluminum chassis. One of the prototypes was developed with an electric battery, and the other with a hydrogen fuel cell system, demonstrating the full potential of the unique ARCC design.

Our Client’s Goal

Commercialisation & Business Development

In March 2021, ARCC moved to a new manufacturing in Smithfield, New South Wales, to finalise prototypes for its unique zero emission buses, and begin road testing.

Having found success with the prototypes, ARCC was now ready to move into the commercialisation phase. Significant capital would be required to produce additional prototypes and developing further testing programs. In addition, ARCC required support for ongoing business development and tendering for major bus fleet projects for government and private organisations.

AXITO’s Solution

Axito Capital Secured a $2.2 Million Investment in Just 56 Hours

Axito Capital connects clients with equity and debt financing opportunities to maximise their growth potential. Axito brings clients into their expansive network of institutional, angel and private investors, and guides them through each stage of securing an investment. This includes:

  • Preparing the Information Memorandum for potential investors to peruse (a condensed version of the business plan).
  • Crafting a compelling Pitch Deck, highlighting the most salient points for presentation to prospective investors.
  • Coaching for pitch presentations and investment meetings.

Axito Capital worked closely with ARCC to create a map of the range of funding options available. It was decided that the ideal route was a Capital Raising through a convertible note instrument. Essentially, investors would receive equity in ARCC as a return on their initial cash investment.

The AXITO team showcased ARCC’s extraordinary potential and unique model, especially focusing on the positive environmental impact and the exponential prospect of growth as ARCC fills a gap in the Australian bus industry.

Capitalising on their extensive network of investors, in just a 56-hour timeframe, Axito secured investments totalling $2.2 million. Axito helped ARCC take their manufacturing capabilities to the next level and helped launch products that will have an incredibly positive impact on Australia’s ability to reach a zero emission future.
 

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