CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company specializing in 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 company's $10 million secured convertible loan facility, originally announced on April 29, 2026. The funds are earmarked to accelerate development timelines at its Sorel-Tracy project and support broader growth initiatives across North America.
The transaction is part of a structured financing agreement with RiverFort, a global capital provider. The facility allows for multiple drawdowns over a three-year term, with each drawdown repayable over 18 months. The initial drawdown of $3 million closed on April 29, 2026, and this latest $1.5 million brings the total drawn to $4.5 million. An additional $1.5 million from the second tranche could be advanced before October 29, 2026, subject to mutual agreement, while the remaining $4 million is available over the facility's term.
The $1.5 million drawdown is convertible, at RiverFort's option, 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, repayment is scheduled with 10% due at six months, 20% at twelve months, and the remaining 70% at maturity on March 4, 2028. Warrants issued in connection with this drawdown are exercisable at $0.236250 per share for 48 months, subject to a maximum term of five years from the initial closing. The loan carries a 12% annual interest rate, payable every four months, with default interest capped at 24%. Security is provided by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation.
Proceeds from this drawdown will be deployed to advance CHARBONE'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, emphasized the company's focus on execution, stating that the funds are being directed toward priorities at Sorel-Tracy and across the industrial gas platform.
This financing is a key component of CHARBONE's strategy to scale its hydrogen production capacity and expand its industrial gas network. The company serves sectors like semiconductors, data centers, and aerospace, where UHP gases are critical. By securing this capital, CHARBONE aims to maintain its growth pace and deliver on milestones communicated to shareholders. RiverFort, which has executed over US$15 billion in growth financing, continues to support CHARBONE's expansion.
The closing of this drawdown underscores the company's commitment to becoming a leading provider of clean hydrogen and specialty gases, addressing supply gaps for mid-tier industrial customers. For more information about CHARBONE and its projects, visit charbone.com.
