CHARBONE Corporation, a vertically integrated industrial gases company specializing in clean ultra-high purity (UHP) hydrogen, has closed a $1.5 million drawdown under its secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. This drawdown represents the first half of the $3 million second tranche available under the facility, which was initially announced on September 2, 2026. The company plans to use the proceeds to accelerate development of its hydrogen production plants, support capital expenditures, and provide working capital for near-term growth initiatives.
The convertible loan facility, structured as a multi-drawdown secured loan, provides up to $10 million in total financing. The initial drawdown of $3 million closed on April 29, 2026. With this latest drawdown, RiverFort now holds $4.5 million in principal amount under the facility. The remaining $1.5 million of the second tranche can be advanced before the date falling six calendar months from the first drawdown, subject to mutual agreement and customary conditions. An additional $4 million remains available over the term of the loan, contingent on mutual consent.
The loan bears interest at 12% per annum, payable in cash every four months, with a default interest rate capped at 24%. The principal is repayable over 18 months from each drawdown, with maturity dates of October 29, 2027, for the initial drawdown and March 4, 2028, for the current one. The lender has the option to convert the principal 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, repayment is scheduled as 10% at six months, 20% at twelve months, and 70% at maturity. Any securities issued upon conversion are subject to a statutory four-month hold period in Canada.
Each whole warrant issued in connection with this drawdown entitles the holder to purchase one additional common share at a price of $0.236250 per share for a 48-month period, subject to a maximum of five years from the original loan closing. The loan is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. An implementation fee of 5% of the drawdown amount has been paid in cash.
Benoit Veilleux, CFO and Corporate Secretary of CHARBONE, stated: “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 a key element of CHARBONE's strategy to scale its clean UHP hydrogen production capacity and expand its industrial gas platform across North America. The company's modular, decentralized approach aims to serve mid-tier customers in sectors such as semiconductors, artificial intelligence, data centers, pharmaceuticals, and aerospace, where high-purity gases are essential. By securing this capital, CHARBONE is positioned to accelerate timelines at its Sorel-Tracy facility and support broader operational growth.
RiverFort, the lender, is an international provider of debt and equity capital to high-growth companies, operating from offices in London, Australia, Gibraltar, with a strong presence in Europe and Canada. The firm has executed over US$15 billion in growth financing transactions. For more information about CHARBONE, visit www.charbone.com.
