CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company specializing in ultra-high purity (UHP) hydrogen, announced the closing of a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd. This drawdown is the first half of the second tranche of up to $3 million available under the company's secured convertible loan facility, which totals up to $10 million. The closing, announced on September 8, 2026, follows the initial $3 million drawdown closed on April 29, 2026, and brings the total principal amount owed to RiverFort to $4.5 million.
The capital is expected to be deployed to accelerate development timelines of CHARBONE's clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital to fuel near-term growth initiatives. This strategic funding is part of CHARBONE's broader plan to scale hydrogen production capacity and expand its industrial gas platform across North America, targeting key sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense, where UHP gases are critical for high-precision manufacturing.
Under the terms of the convertible loan, the $1.5 million drawdown carries a 12% annual interest rate, payable in cash every four months, with default interest capped at 24%. The principal is convertible, at RiverFort's option, into units consisting of one common share and 0.3 of a warrant at a conversion price of $0.196875 per unit. If not converted earlier, repayment is scheduled in installments: 10% at six months, 20% at twelve months, and 70% at maturity in 18 months (March 4, 2028). Each whole warrant issued allows the holder to acquire one additional common share at $0.236250 per share for 48 months, subject to a maximum of five years from the loan's closing date. The securities issued upon conversion are subject to a four-month statutory hold period in Canada.
The loan is secured with a first-ranking hypothec over the universality of all 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.
Benoit Veilleux, CFO and Corporate Secretary of CHARBONE, emphasized the company's focus on execution: “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.”
This financing is pivotal for CHARBONE as it advances its network of clean UHP hydrogen production plants, utilizing a modular, decentralized, and demand-driven approach. The company aims to serve mid-tier industrial gas customers with reliable supply of UHP gases, including hydrogen, helium, and oxygen, addressing supply gaps and contributing to the global transition to a lower-carbon economy. The additional capital provides CHARBONE with the financial flexibility to maintain its growth trajectory and meet the increasing demand for clean industrial gases in critical technology sectors.
