CHARBONE Hydrogen Secures $1.013 Million in Oversubscribed Private Placement to Advance Clean Hydrogen Infrastructure
CHARBONE Hydrogen Corporation successfully closed an oversubscribed $1.013 million private placement, providing critical funding to advance its North American clean hydrogen production network and demonstrating strong investor confidence in the company's low-carbon transition strategy.
CHARBONE Hydrogen Corporation has completed the second and final closing of its $1 million non-brokered private placement, securing an additional $0.551 million that brings the total raised to $1.013 million, exceeding the company's original target. The oversubscribed equity offering demonstrates significant investor interest in CHARBONE'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 the company's long-term growth strategy. The completion of this financing underscores investor confidence in CHARBONE's disciplined, modular approach to delivering clean UHP hydrogen across North America while positioning the company as a key player in the transition to a low-carbon emission economy.
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 the holder the right to purchase one additional common share at $0.08 for 24 months following the closing date. Proceeds from the Equity Offering will be primarily allocated to purchasing operating hydrogen equipment, re-installation at the Sorel-Tracy site, infrastructure development, and general working capital requirements.
The private placement was conducted under the accredited investor exemptions of National Instrument 45-106 - Prospectus Exemptions in Quebec, with Regulation 45-106 governing prospectus exemptions. The company paid a finder's fee of $22,160 and issued 369,333 finder's warrants to registered dealers who introduced qualified subscribers. The closing remains subject to approval from the TSX Venture Exchange and other customary closing conditions, with all securities subject to a statutory four-month and one-day hold period in Canada.
This financing milestone comes as CHARBONE continues to execute its strategy of building a distributed network of green hydrogen production plants while diversifying revenues through helium and specialty gas partnerships. The company's modular approach is designed to reduce risk and enhance flexibility in the rapidly evolving clean energy sector. CHARBONE is listed on multiple exchanges, including the TSX Venture Exchange under symbol CH, OTC Markets as CHHYF, and the Frankfurt Stock Exchange as K47, with additional information available through their corporate website at https://www.charbone.com.
The successful oversubscription of this private placement signals growing market confidence in clean hydrogen infrastructure investments at a time when North America is accelerating its transition to low-carbon energy solutions. CHARBONE's focus on Ultra High Purity hydrogen production addresses increasing industrial demand for clean energy alternatives across multiple sectors, positioning the company to capitalize on emerging opportunities in the hydrogen economy while contributing to broader decarbonization efforts.