CHARBONE Hydrogen Announces $2M Convertible Debentures Replacement to Fund Growth Strategy

CHARBONE Hydrogen Corporation has announced the signing of replacement debentures totaling $2,050,000, amending terms of previously issued secured convertible debentures. The replacement involves modifying debentures originally issued with an aggregate principal amount of $1,746,366 at a 12% interest rate. This financial restructuring represents a strategic move to enhance the company's financing flexibility and support its growth initiatives in the green hydrogen sector.

The key changes implemented through the replacement debentures include extending the maturity date from September and October 2025 to September 30, 2026. The convertible balance increases from approximately $1.7 million to $2.1 million while maintaining the same annual interest rate of 12%, payable monthly. Additionally, the conversion price decreases from $0.10 per common share to $0.07 per share, making the conversion option more attractive to debenture holders.

Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE, stated that these modifications provide the company with enhanced financing flexibility by significantly extending maturities. The additional financing will support the completion and execution of the acquisition of operational hydrogen production and refueling equipment, which was announced on September 5, 2025. This strategic move aligns with CHARBONE's ongoing efforts to optimize its capital structure while advancing its first-mover advantages in the green hydrogen market.

The replacement debenture arrangement remains subject to approval by the TSX Venture Exchange, where CHARBONE is publicly listed under the symbol CH. The company also trades on OTC Markets as CHHYF and on the Frankfurt Stock Exchange as K47. For additional corporate information, investors can visit https://www.charbone.com.

This financial restructuring occurs as CHARBONE continues to develop its modular network of green hydrogen production facilities. The company specializes in Ultra High Purity hydrogen and strategic distribution of industrial gases across North America and the Asia-Pacific region. By partnering with industry players to supply helium and other specialty gases without constructing new plants, CHARBONE implements a disciplined strategy that diversifies revenue streams while reducing risks and increasing operational flexibility.

The implications of this announcement extend beyond immediate financial restructuring, potentially influencing investor confidence in the green energy sector. As companies like CHARBONE secure extended financing and lower conversion prices, they demonstrate the growing viability of hydrogen energy investments. This development may signal strengthening market conditions for renewable energy infrastructure projects and encourage further investment in sustainable energy solutions worldwide.