CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company specializing in clean ultra-high purity (UHP) hydrogen, has 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 secured convertible loan facility, which totals up to $10 million as previously announced on April 29, 2026.
The transaction is a key component of CHARBONE's strategy to scale its hydrogen production capacity and expand its industrial gas platform across North America. The proceeds from this drawdown are expected to be used to accelerate development timelines of the company's clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital to fund near-term growth initiatives.
Under the terms of the convertible loan, the $1.5 million drawdown is convertible, at the option of the lender, 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 with 10% due at six months, 20% at twelve months, and the remaining 70% at maturity in 18 months. The loan bears interest at 12% per annum, payable quarterly in cash, with default interest capped at 24%.
The warrants issued in connection with this drawdown are exercisable at $0.236250 per share for a period of 48 months, subject to a maximum of five years from the initial closing. 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 drawdown has been paid in cash.
This drawdown brings the total principal amount owed to RiverFort to $4.5 million. Additional drawdowns under the facility may be made subject to mutual agreement and customary conditions, with the remaining $4 million available over the term of the loan.
Benoit Veilleux, CFO and Corporate Secretary of CHARBONE, commented: “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 significance of this financing lies in its role in advancing CHARBONE's modular, decentralized hydrogen production plants, which are designed to serve mid-tier industrial customers in sectors such as semiconductors, artificial intelligence, data centers, pharmaceuticals, and aerospace. The company's integrated storage and distribution platform for UHP gases aims to address regional supply gaps and support the transition to a lower-carbon economy.
CHARBONE is listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Stock Exchange. The company continues to evaluate subsequent drawdowns in line with its capital requirements and project milestones.
