CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on clean ultra-high purity (UHP) hydrogen, announced today the closing of a $1.5 million drawdown under its secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. This drawdown represents half of the second tranche of up to $3 million available to the Company under the facility, which totals up to $10 million.
The transaction is a strategic step for CHARBONE as it accelerates the development of its clean hydrogen production plants and expands its industrial gas platform across North America. The proceeds will be used to fast-track project timelines, support capital expenditures and equipment deployment, and provide working capital for near-term growth initiatives.
Under the terms of the convertible loan, the $1.5 million drawdown is convertible into units at a price of $0.196875 per unit, each unit consisting of one common share and 0.3 of a warrant. Each whole warrant allows the holder to purchase an additional share at $0.236250 for a period of 48 months. If not converted earlier, the principal is repayable in stages: 10% at six months, 20% at 12 months, and the remaining 70% at maturity in 18 months. The facility carries a 12% annual interest rate payable every four months, with default interest capped at 24%. The maturity date for this drawdown is March 4, 2028.
This drawdown follows the initial $3 million closing on April 29, 2026, bringing the total advanced under the facility to $4.5 million. An additional $1.5 million remains available under the second tranche, and the remaining $4 million of the facility can be drawn over time, subject to mutual agreement and customary conditions.
Benoit Veilleux, CFO and Corporate Secretary of CHARBONE, said: “With this capital now closed, we are focused on execution to maintain our rapid pace of growth. The proceeds are being deployed directly toward our priorities at Sorel-Tracy and across our industrial gas platform, and we remain committed to delivering on the milestones we have communicated to our shareholders.”
The funding is part of CHARBONE’s broader strategy to scale its network of clean UHP hydrogen production plants, which serve high-tech sectors such as semiconductors, data centers, pharmaceuticals, and aerospace. The company’s modular, decentralized approach aims to address supply gaps for mid-tier industrial gas customers, supporting the transition to a lower-carbon economy.
With this capital infusion, CHARBONE is better positioned to execute its growth plans and strengthen its presence in the emerging clean hydrogen market. The company continues to evaluate further drawdowns from the facility as it aligns with its capital requirements and project milestones.
For more information about CHARBONE and its projects, visit www.charbone.com.
