CHARBONE Hydrogen Corporation has successfully completed the second and final closing of its $1 million non-brokered private placement, securing an additional $551,000 in the second tranche for a total of $1.013 million. The equity offering exceeded the company's original target, demonstrating strong investor interest in CHARBONE's vision for building North America's first clean Ultra High Purity hydrogen production and distribution network.
Dave B. Gagnon, CEO of CHARBONE, expressed satisfaction with the investor support, stating that the financing provides the company with resources to advance the re-installation of hydrogen equipment at the Sorel-Tracy site and continue building infrastructure supporting the company's long-term growth strategy. The successful capital raise reflects investor confidence in CHARBONE's approach to delivering clean UHP hydrogen across North America while maintaining a disciplined, modular strategy that reduces risk in the transition to a low-carbon emission economy.
The private placement involved issuing 9,183,334 units in the second tranche, with each unit priced at $0.06 consisting of one common share and one common share purchase warrant. Each warrant gives holders the right to purchase one additional common share at $0.08 for 24 months following the closing date. The company paid a finder's fee of $22,160 and issued 369,333 finder's warrants to registered dealers involved in the offering.
Proceeds from the equity offering will be primarily allocated to purchasing operating hydrogen equipment, re-installation at the Sorel-Tracy facility, infrastructure development, and general working capital requirements. The units were offered under accredited investor exemptions of National Instrument 45-106 - Prospectus Exemptions, with the closing remaining subject to TSX Venture Exchange approval and other customary conditions. All securities issued are subject to a statutory four-month and one-day hold period in Canada.
This financing represents a significant step forward for CHARBONE's modular approach to building a distributed network of green hydrogen production plants while diversifying revenues through helium and specialty gas partnerships. The company's strategy focuses on reducing risk while positioning itself as a key player in the transition to low-carbon energy solutions. CHARBONE is listed on multiple exchanges including the TSX Venture Exchange (TSXV: CH), OTC Markets (OTCQB: CHHYF), and Frankfurt Stock Exchange (FSE: K47), with additional information available at https://www.charbone.com.
The successful oversubscription of this private placement signals growing market confidence in clean hydrogen infrastructure development at a time when North America is accelerating its transition to sustainable energy sources. As industries seek to reduce carbon emissions, CHARBONE's focus on Ultra High Purity hydrogen production addresses a critical need in manufacturing, transportation, and energy sectors where clean hydrogen serves as both an energy carrier and industrial feedstock.
