CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on clean ultra-high purity (UHP) hydrogen, has closed a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd. This drawdown is part of the previously announced secured convertible loan facility of up to $10 million, structured as a multi-drawdown agreement. The closing brings RiverFort's total principal amount to $4.5 million, with an additional $1.5 million available under the second drawdown provision, subject to mutual agreement and customary conditions.
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. If not converted, repayment is scheduled at 10% after six months, 20% after twelve months, and the remaining 70% at maturity in 18 months. Warrants issued in connection with this drawdown are exercisable at $0.236250 per share for 48 months, subject to a maximum of five years from the initial closing date.
The facility is secured by a first-ranking hypothec over the universality of present and future movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. An implementation fee of 5% of the drawdowns has been paid in cash on each closing.
Proceeds from this drawdown are earmarked to accelerate development timelines of CHARBONE's clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital for near-term growth initiatives. 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.”
This financing is a key component of CHARBONE's strategy to scale hydrogen production capacity and expand its industrial gas platform across North America. The company's modular, decentralized approach aims to serve mid-tier industrial gas customers with reliable UHP gases, including hydrogen, helium, and oxygen, addressing supply gaps in regional markets. CHARBONE is advancing a network of clean hydrogen plants across North America and selected international markets, targeting sectors such as semiconductors, data centers, pharmaceuticals, and aerospace.
The additional capital arrives as CHARBONE continues to execute milestones at its Sorel-Tracy facility and other projects. The company remains listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Stock Exchange. The forward-looking statements in this announcement reflect management's expectations, but actual results may differ due to risks outlined in the company's filings on SEDAR+.
