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. This represents half of the second drawdown of up to $3 million available under the company's secured convertible loan facility, which totals up to $10 million. The initial drawdown of $3 million closed on April 29, 2026, and the remaining $1.5 million of this second tranche may be advanced before the six-month anniversary of the first drawdown, subject to mutual agreement and customary conditions.
The funding is a key component of CHARBONE's strategy to scale its clean ultra-high purity (UHP) hydrogen production capacity across North America. Proceeds will be used to accelerate development timelines for its production plants, support capital expenditures and equipment deployment, and provide working capital for near-term growth initiatives. This capital injection underscores the company's commitment to meeting milestones in its Sorel-Tracy project and broader industrial gas platform, as stated by CFO Benoit Veilleux.
The convertible loan carries a 12% annual interest rate, payable in cash every four months, with default interest capped at 24%. The $1.5 million drawdown is convertible into units, each 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 at 10% after six months, 20% after twelve months, and 70% at maturity in 18 months. Each whole warrant issued in connection with this drawdown allows the purchase of one additional common share at $0.236250 for 48 months. The loan is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation.
This drawdown brings the total principal amount owed to RiverFort to $4.5 million. The facility's remaining $4 million can be drawn during the loan term, subject to mutual agreement. RiverFort, an international provider of growth capital, has executed over US$15 billion in financing transactions, and its continued investment signals confidence in CHARBONE's business model.
CHARBONE focuses on serving sectors like semiconductors, AI data centers, and aerospace, where UHP gases are critical. Its modular, decentralized approach aims to address supply gaps for mid-tier customers. By securing this funding, CHARBONE is better positioned to execute its growth plans and contribute to the clean energy transition. For more details, visit www.charbone.com.
