CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer and distributor of clean ultra-high purity (UHP) hydrogen and industrial gases, has announced the closing of the initial $3 million drawdown under a secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. The facility provides up to $10 million in total committed financing, structured in multiple drawdowns over a three-year term.
The Convertible Loan, first announced on March 31 and April 23, 2026, is designed to support CHARBONE's broader strategy to scale hydrogen production capacity and expand its industrial gas platform across North America. The initial $3 million tranche will be used to accelerate development timelines of the company's clean UHP hydrogen production facilities, support capital expenditures and equipment deployment, and provide general working capital to accelerate near-term growth initiatives.
Under the terms of the agreement, the Convertible Loan carries a 12% annual interest rate, payable in cash every four months, with default interest capped at 24%. The first drawdown is convertible at the option of the lender into units composed of one common share and 0.3 of a warrant, at a conversion price of $0.15 per unit. Each whole warrant issued in connection with the first drawdown will be exercisable to acquire one additional common share at a price of $0.195 per share, for a period of 48 months. If not converted earlier, 10% of the first drawdown is repayable at the end of six months, 20% at 12 months, and 70% at the maturity date of October 29, 2027.
Additional drawdowns are available: a second tranche of up to $3 million may be advanced within six months of the first closing, and the remaining $4 million is available during the loan term, subject to mutual agreement and customary conditions. The loan is secured by a first-ranking hypothec over the universality of all present and future movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation.
“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.”
CHARBONE is a vertically integrated industrial gases company focused on developing a network of supply hubs for the production, storage, and distribution of UHP strategic industrial gases. The company serves customers in semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies, where UHP gases are critical for high-precision manufacturing. Its modular, decentralized, and demand-driven approach aims to provide scalable growth and more stable revenue generation.
RiverFort Global Opportunities PCC Ltd. provides debt and equity-based capital to high-growth companies and operates from offices in London, Australia, Gibraltar, with a strong presence in Europe and Canada. The RiverFort team has executed in excess of US$15 billion of growth financing transactions.
The successful closing of this initial tranche underscores CHARBONE's ability to secure financing for its clean hydrogen infrastructure, which is increasingly important as industries seek reliable sources of UHP gases for advanced manufacturing and energy transition. For more information, visit www.charbone.com.
