CHARBONE Corporation, a North American producer and distributor of clean ultra-high purity (UHP) hydrogen and industrial gases, announced the closing of a secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. for up to $10 million. The initial drawdown of $3 million has been completed, representing the first tranche of the multi-drawdown facility, as previously announced on March 31 and April 23, 2026.
The convertible loan is structured to provide CHARBONE with staged capital over a three-year term, with each drawdown repayable over 18 months. The initial drawdown matures on October 29, 2027, and carries an interest rate of 12% per annum, payable in cash every four months, with default interest capped at 24%. The lender may convert the first drawdown into units consisting of one common share and 0.3 of a warrant at a conversion price of $0.15 per unit. If not converted, 10% of the principal is repayable after six months, 20% after 12 months, and the remaining 70% at maturity. Each whole warrant issued in connection with the first drawdown is exercisable at $0.195 per share for 48 months. The facility is secured by a first ranking hypothec over the universality of present and future movable property of Charbone Hydrogène Québec Inc. and Charbone Hydrogen Corporation.
CHARBONE plans to use the proceeds from the initial drawdown to accelerate development timelines of its clean UHP hydrogen production facilities, support capital expenditures and equipment deployment, and provide general working capital to accelerate near-term growth initiatives. The company may draw additional tranches—up to $3 million in a second drawdown within six months, subject to mutual agreement, and a remaining $4 million over the loan term—as part of its broader strategy to scale hydrogen production capacity and expand its industrial gas platform across North America.
“This closing represents an important milestone for CHARBONE as we continue to execute on our growth strategy,” said Benoit Veilleux, CHARBONE’s Chief Financial Officer and Corporate Secretary. “The partnership with RiverFort provides flexible, staged capital that aligns with our development timeline and supports the acceleration of our hydrogen infrastructure buildout.”
The financing is a key component of CHARBONE’s strategy to develop a network of clean UHP hydrogen production facilities and serve customers in sectors such as semiconductors, artificial intelligence, data centers, advanced pharmaceuticals, and aerospace and defense. The company’s modular, decentralized approach aims to address supply gaps for mid-tier industrial gas customers and support the transition to a lower-carbon economy.
CHARBONE is listed on the TSX Venture Exchange (TSXV: CH), OTC Markets (OTCQB: CHHYF), and Frankfurt Stock Exchange (FSE: K47). More information is available at www.charbone.com.
