CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on ultra-high purity (UHP) hydrogen, announced 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 before a date six months from the initial drawdown, which occurred on April 29, 2026.
The company now has drawn $4.5 million under the facility, which was initially announced in April 2026. The remaining $1.5 million of the second drawdown may be advanced subject to mutual agreement, while the final $4 million of the total $10 million facility can be accessed during the term under similar conditions.
Key terms of the latest drawdown include a conversion price of $0.196875 per unit, with each unit comprising one common share and 0.3 of a warrant. Each whole warrant allows the purchase of an additional share at $0.236250 for up to 48 months. The loan carries an interest rate of 12% per annum, payable in cash every four months, with repayment scheduled as 10% at six months, 20% at 12 months, and the remaining 70% at maturity. The maturity date for this drawdown is March 4, 2028.
The proceeds are earmarked for accelerating development timelines at CHARBONE's clean UHP hydrogen production plants, supporting capital expenditures and equipment deployment, and providing general working capital for near-term growth initiatives. The company's CFO, Benoit Veilleux, emphasized that the capital will be deployed directly toward priorities at its Sorel-Tracy project and across its industrial gas platform, aligning with communicated milestones.
This financing is a strategic component of CHARBONE's broader plan to scale hydrogen production and expand its presence in North America. The company's modular, decentralized approach aims to serve mid-tier industrial customers with reliable UHP gases, including hydrogen, helium, and oxygen. By securing additional capital, CHARBONE positions itself to address supply gaps and support the transition to a lower-carbon economy.
RiverFort, the lender, has executed over US$15 billion in growth financing transactions and continues to support CHARBONE's growth. The facility is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation.
This drawdown reflects investor confidence in CHARBONE's strategy and its ability to execute on its growth plans. As the company deploys these funds, it aims to meet the increasing demand for clean hydrogen and specialty gases in sectors like semiconductors, data centers, and aerospace.
