CHARBONE Hydrogen Secures $1.01 Million in Oversubscribed Private Placement to Advance Clean Hydrogen Infrastructure

CHARBONE Hydrogen Corporation has completed the second and final closing of its non-brokered private placement, raising a total of $1.013 million that exceeded the company's original $1 million target. The successful oversubscription demonstrates strong investor interest in the company's vision to establish North America's first clean ultra high purity hydrogen production and distribution network.

The second tranche of the equity offering secured $551,000 through the issuance of 9,183,334 units, with each unit priced at $0.06 consisting of one common share and one common share purchase warrant. Dave B. Gagnon, CEO of CHARBONE, stated that the financing provides the company with resources to advance the re-installation of hydrogen equipment at the Sorel-Tracy site and continue building infrastructure supporting the company's long-term growth strategy.

The significance of this funding extends beyond the immediate capital infusion, representing investor confidence in CHARBONE's disciplined, modular approach to hydrogen production. This method reduces risk while positioning the company as a key player in the transition to a low-carbon emission economy. The proceeds will be primarily allocated to purchasing operating hydrogen equipment, re-installation at the Sorel-Tracy site, infrastructure development, and general working capital requirements.

Each warrant issued in the offering gives holders the right to purchase one additional common share at $0.08 per share for 24 months following the closing date. The company paid a finder's fee of $22,160 and issued 369,333 finder's warrants to registered dealers involved in the transaction. The units were offered under accredited investor exemptions outlined in National Instrument 45-106 - Prospectus Exemptions, with the offering remaining subject to final TSX Venture Exchange approval.

This development matters because it accelerates the deployment of clean hydrogen infrastructure at a critical time in the global energy transition. Hydrogen represents a crucial component in decarbonizing industrial processes and transportation sectors, and CHARBONE's progress signals the maturation of North America's clean hydrogen market. The successful funding round indicates that investors recognize the strategic importance of establishing domestic hydrogen production capabilities rather than relying on imported energy sources.

The implications for industries ranging from manufacturing to transportation are substantial, as reliable access to clean hydrogen could enable broader adoption of hydrogen fuel cell technology and reduce carbon emissions from industrial processes. For consumers, the expansion of hydrogen infrastructure could eventually lead to more accessible clean energy alternatives and contribute to lower overall carbon emissions in the economy. The company's focus on ultra high purity hydrogen specifically targets applications requiring the highest quality standards, including electronics manufacturing and specialized industrial processes.

All securities issued under the offering are subject to a statutory four-month and one-day hold period in Canada. The company's forward-looking statements and additional corporate information are available through regulatory filings accessible at https://www.sedar.com, while general corporate details can be found at https://www.charbone.com. The successful completion of this financing round represents a meaningful step forward in building the foundational infrastructure needed for North America's clean hydrogen economy.