CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer and distributor of clean ultra-high purity (UHP) hydrogen and industrial gases, has closed a secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. for up to $10 million. The initial drawdown of $3 million has been completed, marking the first tranche of the total committed financing.
The convertible loan is structured as a multi-drawdown secured facility, with additional tranches available subject to customary conditions and mutual agreement. A second drawdown of up to $3 million may be advanced within six months from the first drawdown closing, and the remaining $4 million can be drawn in aggregate over the loan term, subject to mutual agreement.
Key terms include a three-year term for drawdowns, with each drawdown repayable over 18 months. The initial drawdown matures on October 29, 2027. Interest is set at 12% per annum, payable in cash every four months, with default interest capped at 24%. The first drawdown is convertible at the lender's option into units comprising one common share and 0.3 of a warrant at a conversion price of $0.15 per unit. If not converted earlier, 10% of the first drawdown is repayable at six months, 20% at 12 months, and 70% on maturity. Warrants issued in connection with the first drawdown are exercisable at $0.195 per share for 48 months. The loan is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation.
Proceeds from the initial drawdown are expected to accelerate development timelines of the company's clean UHP hydrogen production facilities, support capital expenditures and equipment deployment, and provide working capital to accelerate near-term growth initiatives.
Benoit Veilleux, CHARBONE's CFO and Corporate Secretary, stated, "This closing represents an important milestone for CHARBONE as we continue to execute on our growth strategy. The partnership with RiverFort provides flexible, staged capital that aligns with our development timeline and supports the acceleration of our hydrogen infrastructure buildout."
RiverFort, an international business with offices in London, Australia, and Gibraltar, and a presence in Europe and Canada, has executed over US$15 billion in growth financing transactions. CHARBONE is vertically integrated, focusing on UHP gases for semiconductors, AI, data centers, pharmaceuticals, and aerospace. The company is advancing a network of clean hydrogen production facilities across North America and selected international markets.
More information is available at www.charbone.com.
