CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, announced the closing of a $1.5 million drawdown from its secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. This second drawdown, part of a larger $3 million tranche, brings the total principal amount owed to RiverFort to $4.5 million.
The company plans to use the proceeds to accelerate development timelines of its clean ultra-high purity (UHP) hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital. According to Benoit Veilleux, CFO and Corporate Secretary, the funds are being deployed directly toward priorities at Sorel-Tracy and across the industrial gas platform.
The convertible loan, initially announced on April 29, 2026, provides up to $10 million in secured funding, structured in multiple drawdowns. The initial drawdown of $3 million closed on that date. The second drawdown of up to $3 million is now partially drawn, with the remaining $1.5 million available under certain conditions. Additional funds up to $4 million are accessible over the loan term, subject to mutual agreement.
The loan carries a 12% annual interest rate, payable in cash every four months, with a default interest cap of 24%. The $1.5 million drawn is convertible 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: 10% at six months, 20% at twelve months, and the remaining 70% at maturity, which is set for March 4, 2028.
Each whole warrant issued in connection with this drawdown allows the purchase of one additional common share at $0.236250 per share for 48 months, subject to a maximum of five years from the original closing date. The loan is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation. An implementation fee of 5% of drawdowns has been paid in cash.
This financing is a key component of CHARBONE’s strategy to scale hydrogen production and expand its industrial gas platform across North America. The company focuses on UHP hydrogen and other strategic gases for sectors including semiconductors, data centers, pharmaceuticals, and aerospace. Its modular, decentralized approach aims to serve mid-tier customers reliably.
RiverFort provides debt and equity capital to high-growth companies, operating globally with offices in London, Australia, and Gibraltar. The company has executed over US$15 billion in growth financing transactions.
CHARBONE is listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Stock Exchange. The company continues to evaluate subsequent drawdowns under the loan facility as per its capital requirements.
