Charbone Secures $10 Million Convertible Loan Facility
Brossard, Quebec — April 29, 2026 — Leads & Copy — Charbone Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) has closed a secured convertible loan facility with Riverfort Global Opportunities PCC Ltd for up to $10 million.
The North American producer and distributor of Ultra High Purity (“UHP”) clean hydrogen and industrial gases successfully completed an initial draw of $3 million under the convertible loan. This first draw represents the initial tranche of the committed funding.
The convertible loan is structured as a secured loan with multiple tranches available to the company during the term of the agreement, subject to customary conditions and mutual agreement.
The key terms of the loan include:
The total loan amount is a secured convertible loan of up to $10 million, structured in multiple tranches. The first draw of $3 million is now complete. A second draw of up to $3 million may be granted to the company within six calendar months following the initial draw, subject to mutual agreement. The remaining balance of $4 million can be drawn at once during the term of the convertible loan, subject to mutual agreement between the company and RiverFort, and the usual conditions stipulated in the Convertible Loan agreement.
The drawdowns under the Convertible Loan are available for three years, with each drawdown repayable over 18 months. The maturity date for the first drawdown is October 29, 2027.
Interest is set at 12% per year, payable in cash every four months, with late payment interest capped at 24%.
The initial drawdown is convertible, at the lender’s option, into units composed of one common share of the company and 0.3 warrants, at a conversion price of $0.15 per unit. If not converted beforehand, 10% of the first drawdown will be repaid after six months, 20% after 12 months, and 70% at maturity in 18 months. Securities issued upon conversion of the Convertible Loan capital will be subject to a four-month statutory hold period in Canada.
Each warrant issued as part of the initial $3 million drawdown allows for the acquisition of an additional common share of Charbone at a price of $0.195 per share for 48 months, capped at five years from the closing date of the Convertible Loan.
The loan is secured by a first-ranking mortgage on all present and future movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation.
Implementation fees equal to 5% of the initial drawdown are payable in cash at closing, and non-refundable due diligence fees of $20,000 have already been paid.
The funds from the first draw are expected to be used to:
- Accelerate the development schedule of the company’s UHP clean hydrogen production facilities.
- Support capital expenditures and equipment deployment.
- Provide general working capital to accelerate short-term growth initiatives.
Charbone and RiverFort will continue to assess subsequent drawdowns under the Convertible Loan, which may be made over time in accordance with the agreement and the company’s capital needs.
Benoit Veilleux, CFO and Corporate Secretary of Charbone, said that this closing represents a milestone for Charbone as it continues to implement its growth strategy. He added that the partnership with RiverFort provides flexible and staggered capital that aligns with the company’s development schedule and supports the acceleration of the deployment of its hydrogen infrastructure.
Charbone is a developer and producer of Ultra High Purity (UHP) clean hydrogen with an expanding industrial gas distribution platform. With a modular approach, Charbone is focused on developing a network of clean hydrogen production facilities in North America and abroad, starting with its flagship project in Sorel-Tracy, Quebec. The company’s integrated model reduces risks, improves scalability, and diversifies revenue streams through partnerships in helium and other specialty gases. Charbone is committed to supporting the global transition to a low-carbon economy by providing accessible and decentralized clean hydrogen and specialty gas solutions while supporting underserved industrial gas customers and accelerating the transition to local clean energy. Charbone is listed on the TSX Venture Exchange (TSXV: CH), on the OTC markets (OTCQB: CHHYF), and on the Frankfurt Stock Exchange (FSE: K47).
Source: Charbone
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