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 was originally announced on April 29, 2026. The total facility is worth up to $10 million.
The transaction is a key component of CHARBONE's strategy to accelerate development of its clean hydrogen production plants and expand its industrial gas platform across North America. Proceeds will support capital expenditures, equipment deployment, and general working capital to drive near-term growth initiatives.
The $1.5 million drawdown is convertible into units consisting of one common share and 0.3 of a warrant at a conversion price of $0.196875 per unit. If not converted, the principal will be repaid in installments: 10% after 6 months, 20% after 12 months, and the remaining 70% at maturity in 18 months. Warrants issued are exercisable at $0.236250 per share for 48 months, subject to a maximum of 5 years from the original closing date.
The loan carries a 12% annual interest rate payable in cash every 4 months, with default interest capped at 24%. The facility is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation, covering the Sorel-Tracy project and other assets.
With this drawdown, RiverFort now holds an aggregate principal amount of $4.5 million under the Convertible Loan. The remaining $1.5 million of the second tranche may be advanced before the date falling six months from the initial drawdown, subject to mutual agreement. An additional $4 million is available for future drawdowns during the loan term.
Benoit Veilleux, CFO and Corporate Secretary of CHARBONE, 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.”
CHARBONE is developing a network of clean UHP hydrogen production plants and aims to serve sectors such as semiconductors, data centers, pharmaceuticals, and aerospace, where high-purity gases are essential. The company's modular approach and integrated storage and distribution platform enable scalable growth and reliable supply for regional customers.
RiverFort, the lender, provides debt and equity capital to high-growth companies and has executed over US$15 billion in growth financing transactions globally. This partnership underscores confidence in CHARBONE's business model and growth prospects.
The successful closing of this drawdown positions CHARBONE to accelerate its near-term milestones, particularly at its flagship Sorel-Tracy project. The company continues to evaluate subsequent drawdowns under the facility to align funding with its capital requirements as it advances its clean hydrogen initiatives.
For more details on CHARBONE and its projects, visit https://www.charbone.com.
