Corporation Charbone (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on Ultra High Purity hydrogen production, has announced the closing of a $1.5 million draw from its existing convertible loan facility with RiverFort Global Opportunities PCC Ltd. The draw represents half of the $3 million maximum available under the second tranche of the facility, originally announced on April 29, 2026. Proceeds are earmarked to accelerate hydrogen plant development, support capital expenditures, and fund general working capital for near-term growth initiatives. Investors may be watching how this financing positions the company's Sorel-Tracy project timeline.

Key Points

  • Corporation Charbone (TSXV: CH; OTCQB: CHHYF; FSE: K47) is a vertically integrated UHP industrial gases and clean hydrogen company.
  • Charbone has closed a $1.5 million second draw under its secured convertible loan facility with RiverFort Global Opportunities PCC Ltd.
  • The facility carries a 12% annual interest rate; this draw matures March 4, 2028, and is convertible at $0.196875 per unit with warrants exercisable at $0.236250 per share for 48 months.
  • RiverFort now holds a total principal balance of $4.5 million outstanding under the convertible loan, with up to $5.5 million remaining available subject to mutual agreement.

Structure of Charbone's $10 Million RiverFort Convertible Loan Facility

The secured convertible loan facility with RiverFort has a maximum value of $10 million, structured across multiple draws. The first draw of $3 million closed on April 29, 2026, with a maturity date of October 29, 2027. The latest $1.5 million draw brings the total drawn to $4.5 million. A further $1.5 million remains accessible under the second tranche before the deadline six calendar months after the first draw's closing, subject to mutual agreement. The remaining $4 million of the overall facility may be drawn in a single tranche during the loan's three-year term, also subject to mutual agreement and standard conditions.

Conversion Terms and Warrant Details for the $1.5 Million Second Draw

The newly closed $1.5 million draw is convertible at the lender's discretion into units priced at $0.196875 per unit, with each unit comprising one common share and 0.3 of a warrant. Each whole warrant entitles the holder to acquire one additional Charbone common share at $0.236250, exercisable for 48 months, within five years of the April 29, 2026 facility closing date. If not converted, repayment is structured as 10% at six months, 20% at twelve months, and 70% at maturity. Issued securities are subject to a four-month Canadian statutory hold period. A 5% implementation fee was paid in cash at closing.

Charbone's Intended Use of Proceeds at Sorel-Tracy and Broader Gas Platform

The company's disclosure states the $1.5 million will be directed toward accelerating the development timeline of its clean UHP hydrogen production plants, supporting capital expenditures and equipment deployment, and providing general working capital for short-term growth initiatives. Chief Financial Officer Benoit Veilleux stated in the release that funds are being directly invested in the company's Sorel-Tracy priorities and its broader industrial gas platform, adding that the company remains committed to achieving objectives communicated to shareholders. The immediate share price impact was not clear from available public information.