CHARBONE Secures Up to $10M Convertible Loan to Accelerate Hydrogen Production Infrastructure

CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer of clean ultra-high purity (UHP) hydrogen and industrial gases, has closed the first tranche of a secured convertible loan facility with RiverFort Global Opportunities PCC Ltd., securing $3 million with access to up to $10 million in total committed financing. The agreement, previously announced on March 31 and April 23, 2026, marks a significant step in the company's strategy to scale hydrogen production capacity and expand its industrial gas platform across North America.

The convertible loan is structured as a multi-drawdown secured facility, with the initial drawdown of $3 million now closed. Additional tranches include a second drawdown of up to $3 million that may be advanced within six months subject to mutual agreement, and a remaining $4 million available over the loan term under similar conditions. Each drawdown carries a three-year term with repayment over 18 months, and the initial drawdown matures on October 29, 2027. Interest is set at 12% per annum payable in cash every four months, with default interest capped at 24%.

Under the conversion terms, the first drawdown is convertible at the lender's option into units comprising one common share and 0.3 of a warrant at a conversion price of $0.15 per unit. If not converted earlier, repayment is structured as 10% at six months, 20% at 12 months, and 70% at maturity. Each whole warrant from the first drawdown entitles the holder to purchase one additional common share at $0.195 for 48 months. The securities issued upon conversion are subject to a statutory four-month hold period in Canada. The loan is secured by 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.

Proceeds from the initial drawdown are expected to accelerate development timelines for the company's clean UHP hydrogen production facilities, support capital expenditures and equipment deployment, and provide general working capital for near-term growth initiatives. Benoit Veilleux, CHARBONE's Chief Financial Officer and Corporate Secretary, stated, "This closing represents an important milestone for CHARBONE as we continue to execute on our growth strategy. The partnership with RiverFort provides flexible, staged capital that aligns with our development timeline and supports the acceleration of our hydrogen infrastructure buildout."

CHARBONE focuses on developing a network of supply hubs for UHP gases, serving sectors such as semiconductors, artificial intelligence, data centers, advanced pharmaceuticals, and aerospace. The company's modular, decentralized approach aims to address supply gaps for mid-tier industrial gas customers. RiverFort, which provides debt and equity capital to high-growth companies, has executed over US$15 billion in growth financing transactions globally.

For more information, visit CHARBONE's website. The company's filings are available on SEDAR+ at www.sedarplus.ca.