CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company specializing in clean ultra-high purity (UHP) hydrogen, announced on September 8, 2026, the closing of a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd. This drawdown represents half of the second tranche of up to $3 million available under the company's secured convertible loan facility, which totals up to $10 million. The initial $3 million drawdown closed on April 29, 2026, and with this latest closing, RiverFort now holds an aggregate of $4.5 million in principal under the facility.
The funds are earmarked to accelerate development timelines for CHARBONE's clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital to drive near-term growth initiatives. Benoit Veilleux, CFO and Corporate Secretary, emphasized the company's focus on execution, stating that proceeds are being deployed directly toward priorities at its Sorel-Tracy project and across its industrial gas platform.
The convertible loan carries a 12% annual interest rate, payable in cash every four months, with default interest capped at 24%. The $1.5 million drawdown is convertible into units comprising one common share and 0.3 of a warrant at a conversion price of $0.196875 per unit. If not converted early, repayment is scheduled in installments: 10% at six months, 20% at twelve months, and the remaining 70% at maturity. The maturity date for this drawdown is March 4, 2028, while the initial drawdown matures on October 29, 2027. Each whole warrant issued will be exercisable to acquire an additional common share at $0.236250 per share for 48 months, subject to a maximum of five years from the initial closing.
Security for the loan is provided through a first-ranking hypothec over the universality of present and future movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. An implementation fee of 5% of the drawdowns has been paid in cash upon each closing.
This financing is a strategic move for CHARBONE as it seeks to scale its hydrogen production capacity and expand its industrial gas platform across North America. The company serves critical sectors such as semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense, where UHP gases are essential for high-precision manufacturing. By securing this capital, CHARBONE aims to address supply gaps for mid-tier industrial customers and accelerate the transition to localized clean energy.
The announcement underscores a broader trend of investment in clean hydrogen infrastructure, which is increasingly seen as vital for decarbonizing industrial processes. For industry stakeholders, this development signals continued momentum in the adoption of modular, decentralized hydrogen production models that offer operational flexibility and more stable revenue streams. As CHARBONE advances its network of production plants, the successful deployment of these funds could enhance its competitive position and contribute to the resilience of the UHP gas supply chain in North America.
RiverFort, the lender, is an international provider of debt and equity capital to high-growth companies, with offices in London, Australia, Gibraltar, and a strong presence in Europe and Canada. The firm has executed over US$15 billion in growth financing transactions. This collaboration highlights the growing interest from alternative funding sources in supporting clean technology ventures.
CHARBONE's forward-looking statements indicate management's expectations for future growth, but caution that actual results may differ due to risks and uncertainties detailed in its regulatory filings. The company remains committed to delivering on milestones communicated to shareholders, and this drawdown provides the necessary capital to maintain its rapid pace of development.
