CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer and distributor of clean ultra-high purity (UHP) hydrogen and industrial gases, announced the closing of a secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. for up to $10 million, with an initial drawdown of $3 million. The financing, previously announced on March 31 and April 23, 2026, is structured as a multi-drawdown secured facility, allowing additional tranches over the agreement term subject to customary conditions and mutual agreement.
The Convertible Loan carries a 12% annual interest rate, payable in cash every four months, with default interest capped at 24%. The initial 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, repayment occurs in installments: 10% at six months, 20% at 12 months, and 70% on the maturity date of October 29, 2027. Warrants issued 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 universality of present and future movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation.
Proceeds from the initial drawdown are expected to accelerate development timelines of CHARBONE's clean UHP hydrogen production facilities, support capital expenditures and equipment deployment, and provide general working capital to accelerate near-term growth initiatives. The company intends to use the flexible staged capital to scale hydrogen production capacity and expand its industrial gas platform across North America.
Benoit Veilleux, CHARBONE's Chief Financial Officer 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 Global Opportunities PCC Ltd. provides debt and equity-based capital to high-growth companies, operating from offices in London, Australia, and Gibraltar, with a strong presence in Europe and Canada. The firm has executed over US$15 billion in growth financing transactions.
CHARBONE is a vertically integrated industrial gases company focused on developing a network of supply hubs for UHP strategic industrial gases, serving customers in semiconductors, artificial intelligence, data centers, advanced pharmaceuticals, and aerospace and defense. The company's modular, decentralized approach supports scalable growth and operational flexibility. Further details on the company are available at www.charbone.com.
This news release contains forward-looking statements, which involve risks and uncertainties as described in the Corporation's Management's Discussion & Analysis for the period ended September 30, 2025, available on SEDAR+ at www.sedarplus.ca. Except as required by law, CHARBONE undertakes no obligation to update forward-looking information.
