CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company specializing in clean ultra-high purity (UHP) hydrogen, announced the closing of a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd. This drawdown represents half of the second tranche of up to $3 million available under the company's secured convertible loan facility, which totals up to $10 million.
The transaction, initially announced on September 2, 2026, brings RiverFort's total principal amount under the facility to $4.5 million. The remaining $1.5 million of the second drawdown may be advanced before the six-month anniversary of the first drawdown, subject to mutual agreement. An additional $4 million remains available for future drawdowns during the facility's term.
The convertible loan carries a 12% annual interest rate, payable in cash every four months, with default interest capped at 24%. The $1.5 million drawdown is convertible into units comprising one common share and 0.3 of a warrant at a conversion price of $0.196875 per unit. Warrants issued upon conversion are exercisable at $0.236250 per share for 48 months, subject to a maximum five-year term. If not converted, repayment occurs in installments: 10% after six months, 20% after twelve months, and 70% at maturity in eighteen months.
The loan is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. CHARBONE paid a 5% implementation fee on this drawdown.
The proceeds are earmarked to accelerate development timelines for the company's clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide working capital for near-term growth. Benoit Veilleux, CFO and Corporate Secretary, stated: “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.”
This funding is part of CHARBONE's strategy to scale its hydrogen production capacity and expand its industrial gas platform across North America. The company serves sectors such as semiconductors, AI and data centers, pharmaceuticals, and aerospace, where UHP gases are critical. CHARBONE's modular, decentralized approach aims to provide reliable supply of UHP gases, addressing supply gaps for mid-tier customers and supporting the transition to a lower-carbon economy.
The company is listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Stock Exchange. For more information, visit www.charbone.com.
Forward-looking statements in this release are based on management's expectations and involve risks and uncertainties, detailed in the company's filing statement available on SEDAR+ at www.sedarplus.ca.
