CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer of clean Ultra High Purity (UHP) hydrogen and industrial gases, has announced modifications to its secured convertible loan agreement with Riverfort Global Opportunities PCC Ltd. The total financing has been increased to up to $10 million, with the first drawdown amount raised from $2.15 million to $3 million. The company stated that the closing process is progressing, pending definitive agreements and TSX Venture Exchange approval.
The revised terms include that subsequent drawdowns will be convertible into common shares at a 25% premium to a reference price, defined as the greater of the five-day VWAP average or a 5% premium to the market price at the time of drawdown announcement. Default interest, if applicable, is capped at 24% per annum. The first drawdown remains convertible into units consisting of one common share and 0.3 of a warrant at $0.15 per unit, with warrants exercisable at $0.195 for 48 months. Interest is 12% per annum payable every four months, and repayment is structured as 10% at six months, 20% at 12 months, and 70% at maturity in 18 months. A 5% implementation fee and a non-refundable $20,000 due diligence fee have been arranged. The loan is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Quebec Inc. and Charbone Hydrogen Corporation.
This financing is critical for CHARBONE as it advances its flagship Sorel-Tracy project in Quebec and expands its clean hydrogen production network. The company also announced the completion of the full conversion of the September 2025 Convertible Replacement Debentures, totaling $2.05 million. These developments underscore CHARBONE's commitment to scaling its modular, low-carbon hydrogen solutions across North America, supported by partnerships in helium and specialty gases. The increased capital provides flexibility to accelerate project timelines and meet growing demand for decentralized clean energy.
