CHARBONE Corporation, a North American producer and distributor of clean ultra high purity hydrogen and industrial gases, announced on April 23, 2026, that it has increased the first drawdown amount of its previously announced secured convertible loan from $2.15 million to $3 million. The loan, arranged with Riverfort Global Opportunities PCC Ltd, provides up to $10 million in financing and marks a key step in advancing the company's Sorel-Tracy hydrogen production project in Quebec.
The modification, detailed in a press release, also adjusts terms for subsequent drawdowns. Those future tranches will be convertible into common shares at a 25% premium to a reference price, defined as the higher of the five-day volume-weighted average price preceding the drawdown or a 5% premium to the market price at the time of announcement. Default interest, if applicable, is capped at 24% per annum on outstanding principal. The first drawdown remains convertible into units comprising one common share and 0.3 of a warrant at $0.15 per unit, with warrants exercisable at $0.195 for 48 months. Interest accrues at 12% annually, payable in cash every four months. Repayment terms require 10% of the first drawdown at six months, 20% at 12 months, and 70% at maturity in 18 months. A 5% implementation fee and a non-refundable $20,000 due diligence fee have been paid.
The loan is secured by a first-ranking hypothec over all present and future movable property of Charbone Hydrogène Quebec Inc. and Charbone Hydrogen Corporation. The securities issued upon conversion will be subject to a four-month hold period in Canada. Closing is subject to definitive agreements and TSX Venture Exchange approval. Separately, CHARBONE completed the full conversion of its September 2025 convertible replacement debentures, totaling $2.05 million.
This development matters because it provides CHARBONE with critical capital to advance its clean hydrogen production facilities, starting with the flagship Sorel-Tracy project. The company's modular approach aims to build a network of decentralized hydrogen plants across North America, targeting underserved industrial gas customers and supporting the transition to a lower-carbon economy. The increased first drawdown indicates lender confidence and progress in meeting closing conditions. For investors, the terms reflect a structured financing with conversion premiums and secured collateral, balancing risk and potential upside. The completion of the prior debenture conversion also clears legacy obligations, streamlining the company's capital structure.
CHARBONE is listed on the TSX Venture Exchange (TSXV: CH), OTC Markets (OTCQB: CHHYF), and Frankfurt Stock Exchange (FSE: K47). More information is available at www.charbone.com. Forward-looking statements in the release are subject to risks detailed in the company's management discussion and analysis available on SEDAR+.
