CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on ultra-high purity (UHP) hydrogen and other strategic gases, announced the closing of a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd. This drawdown represents half of the second tranche (up to $3 million) available under the secured convertible loan facility of up to $10 million, as originally announced on April 29, 2026.
The capital injection is a key component of CHARBONE's strategy to scale hydrogen production capacity and expand its industrial gas platform across North America. Proceeds will be used to accelerate development timelines of its clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital for near-term growth initiatives. According to Benoit Veilleux, CFO and Corporate Secretary of CHARBONE, the funds are being deployed directly toward priorities at the Sorel-Tracy project and across the industrial gas platform, with a focus on executing milestones communicated to shareholders.
The convertible loan is structured as a multi-drawdown secured facility with a three-year term. The initial drawdown of $3 million closed on April 29, 2026. With this new $1.5 million drawdown, RiverFort now holds an aggregate of $4.5 million in principal. The remaining $1.5 million from the second drawdown may be advanced prior to the date falling six months from the first drawdown closing, subject to mutual agreement. Additionally, up to $4 million of the total facility remains available for future drawdowns under customary conditions.
Key terms of the drawdown include a 12% annual interest rate payable in cash every four months, with a default interest cap of 24%. The principal is convertible at the option of the lender into units comprising one common share and 0.3 of a warrant, at a conversion price of $0.196875 per unit. If not converted, repayment is scheduled as 10% at six months, 20% at 12 months, and 70% at maturity in 18 months. Each whole warrant issued is exercisable into one common share at $0.236250 per share for 48 months. The securities issued upon conversion are subject to a four-month hold period in Canada.
The loan is secured with a first-ranking hypothec over the universality of present and future movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. An implementation fee of 5% of the drawdowns has been paid in cash on each closing.
This funding arrives as CHARBONE advances its network of clean UHP hydrogen production plants across North America, targeting sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense. The company's modular, decentralized approach aims to address regional supply gaps for UHP gases and support the transition to a lower-carbon economy. The additional capital is expected to bolster its ability to serve mid-tier industrial gas customers with reliable, localized supply.
CHARBONE is listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Stock Exchange. The company continues to evaluate subsequent drawdowns under the facility in line with its capital requirements and growth trajectory.
