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 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 to the company, with the remaining $1.5 million potentially advanced before the six-month anniversary of the first drawdown.
The facility, initially announced on April 29, 2026, provides up to $10 million in multiple drawdowns. With this closing, RiverFort holds an aggregate of $4.5 million in principal. The proceeds are earmarked to accelerate the development of CHARBONE's clean UHP hydrogen production plants, support capital expenditures, and fund general working capital to expedite near-term growth initiatives.
Dave Gagnon, CHARBONE's CFO, 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." The Sorel-Tracy project in Quebec is a key part of CHARBONE's network of hydrogen production hubs.
The convertible loan carries a 12% annual interest rate, payable every four months, and is secured by a first-ranking hypothec over the assets of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation. Conversion terms allow RiverFort to convert the principal into units at $0.196875 per unit, each consisting of one common share and 0.3 of a warrant. Warrants are exercisable at $0.236250 per share for 48 months.
This financing is critical as CHARBONE positions itself in the growing market for clean hydrogen, particularly for customers in semiconductors, artificial intelligence, data centers, and aerospace, where UHP gases are essential. The company's modular and decentralized approach aims to address supply gaps for mid-tier industrial gas consumers.
RiverFort, an international provider of growth capital, has executed over US$15 billion in financing transactions. This partnership underscores confidence in CHARBONE's strategy and execution capabilities.
The additional funds will enable CHARBONE to continue its expansion plans across North America, supporting the global transition to a lower-carbon economy. Investors and stakeholders can monitor the company's progress through updates on its website: www.charbone.com.
As CHARBONE advances its network of clean hydrogen plants, this capital injection marks a significant step toward achieving its production milestones and enhancing its position in the industrial gases sector.
