Charbone Increases First Drawdown of $10M Convertible Loan to $3M, Secures Financing for Clean Hydrogen Projects
Charbone Corporation has modified its $10 million convertible loan agreement with Riverfort Global Opportunities, increasing the initial drawdown to $3 million, providing critical capital for its clean hydrogen production facilities.
CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer and distributor of clean Ultra High Purity (UHP) hydrogen and strategic industrial gases, has announced an increase in the first drawdown amount of its secured convertible loan from $2.15 million to $3 million. The loan, which provides for up to $10 million in financing from Riverfort Global Opportunities PCC Ltd, is a key step in advancing the company's modular clean hydrogen production network.
The modified terms, following the news release dated March 31, 2026, also include changes to subsequent drawdowns: at the lender's option, they will be convertible into common shares at a conversion price per share at a 25% premium to the reference price. The reference price is defined as the greater of the average of the five daily VWAPs preceding the drawdown date and a 5% premium to the market price at the time of the drawdown announcement. Default interest, if applicable, will be capped at 24% per annum on the outstanding principal.
The first drawdown of $3 million, subject to TSX Venture Exchange approval and definitive agreements, retains its original conversion terms: convertible into units of one common share and 0.3 of a warrant at $0.15 per unit. Each whole warrant will be exercisable at $0.195 per share for 48 months, with a 12% annual interest payable in cash every four months. Repayment terms are structured with 10% due at six months, 20% at 12 months, and 70% at maturity in 18 months. An implementation fee of 5% will be paid on closing, and a non-refundable $20,000 due diligence fee has already been disbursed.
The loan is secured by a first ranking hypothec over the movable property of Charbone Hydrogène Quebec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. This financing is expected to support the company's flagship Sorel-Tracy project in Quebec and its broader strategy to build a network of clean hydrogen production facilities across North America and select international markets.
In addition, CHARBONE announced the full conversion of the September 2025 Convertible Replacement Debentures, totaling $2.05 million. This conversion, along with the new loan, strengthens the company's capital structure as it advances its integrated model for clean hydrogen and industrial gas distribution.
The implications of this announcement are significant for the clean energy sector. CHARBONE's ability to secure and modify this financing demonstrates investor confidence in its modular, decentralized approach to hydrogen production, which aims to reduce risk and enhance scalability. The funds will accelerate development of its Sorel-Tracy facility and support partnerships in helium and other specialty gases, positioning the company to serve underserved industrial gas customers and contribute to the lower-carbon economy. For more details, visit the company's website at www.charbone.com.