CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, announced the closing of a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd. The funding represents half of the second drawdown under a secured convertible loan facility of up to $10 million, initially announced on April 29, 2026, and first detailed on September 2, 2026. This capital injection is aimed at accelerating CHARBONE's growth initiatives in the clean ultra-high purity (UHP) hydrogen sector, with potential implications for the broader industrial gas market and the transition to a lower-carbon economy.
The convertible loan is structured as a multi-drawdown secured facility, with the initial $3 million drawdown closing on April 29, 2026. The remaining $1.5 million of the second drawdown may be advanced before the six-month anniversary of the first drawdown, subject to mutual agreement. The loan carries a 12% annual interest rate, payable in cash every four months, and is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation. The $1.5 million drawdown is convertible into units at $0.196875 per unit, each comprising one common share and 0.3 of a warrant, with warrants exercisable at $0.236250 per share for up to 48 months. An implementation fee of 5% has been paid on the drawdown.
Benoit Veilleux, Chief Financial Officer 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 funds are expected to accelerate development timelines for CHARBONE's clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital for near-term growth.
CHARBONE's vertically integrated model focuses on production, storage, and distribution of UHP hydrogen and other strategic industrial gases. The company serves critical sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense, where UHP gases are essential for high-precision manufacturing. By advancing a network of modular, decentralized clean hydrogen production plants across North America and selected international markets, CHARBONE aims to address supply gaps for mid-tier industrial gas customers. This approach supports scalable growth and diversified revenue generation, positioning the company to benefit from the increasing demand for localized clean energy solutions.
The closing of this drawdown matters because it provides CHARBONE with the financial resources to execute its expansion strategy, potentially increasing the supply of UHP gases in regions where they are often difficult to source. For the industry, it signals continued investor confidence in hydrogen as a key component of the clean energy transition. For readers, it highlights the growth of a local company with global ambitions, contributing to economic development and technological innovation. CHARBONE is listed on the TSX Venture Exchange, the OTC Markets, and the Frankfurt Stock Exchange. For more information, visit www.charbone.com.
