CHARBONE Hydrogen Corporation has completed the second and final closing of its $1 million non-brokered private placement, securing an additional $551,000 for a total of $1.013 million in funding. The oversubscribed equity offering demonstrates strong investor confidence in the company's vision to build North America's first clean Ultra High Purity hydrogen production and distribution network.
Dave B. Gagnon, CEO of CHARBONE, stated that the successful financing provides the company with resources to advance the re-installation of hydrogen equipment at the Sorel-Tracy site and continue building infrastructure supporting long-term growth strategy. The private placement exceeded the company's original target, with proceeds allocated primarily to purchasing operating hydrogen equipment, re-installation at the Sorel-Tracy facility, infrastructure development, and general working capital requirements.
The second tranche involved issuing 9,183,334 units at $0.06 per unit, with each unit 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.
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 customary closing conditions. All securities issued are subject to a statutory four-month and one-day hold period in Canada. CHARBONE's modular approach to building a distributed network of green hydrogen production plants aims to reduce risk while positioning the company as a key player in the transition to a low-carbon emission economy.
The company's forward-looking statements and risk factors are detailed in its Filing Statement dated March 31, 2022, available on SEDAR. CHARBONE trades 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 charbone.com.
This successful funding round represents a significant milestone for the North American hydrogen economy, coming at a time when governments and industries are accelerating their transition to clean energy sources. The oversubscribed nature of the private placement indicates growing investor appetite for hydrogen infrastructure projects, particularly those focused on distributed production networks that can serve multiple regional markets.
For business leaders and technology executives, CHARBONE's progress signals the maturation of hydrogen as a viable clean energy alternative. The company's modular approach to hydrogen production could provide a blueprint for scalable, risk-managed deployment of hydrogen infrastructure across North America. As industries from transportation to manufacturing seek to decarbonize operations, the development of reliable hydrogen supply chains becomes increasingly critical to meeting sustainability targets and maintaining competitive advantage in a low-carbon economy.
