CHARBONE Increases First Drawdown Amount to $3M in $10M Convertible Loan from RiverFort

CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47), a North American producer and distributor of clean Ultra High Purity hydrogen and industrial gases, announced modifications to its secured convertible loan agreement with Riverfort Global Opportunities PCC Ltd. The first drawdown amount has been increased from $2.15 million to $3 million, as per the company's news release. The loan, originally announced on March 31, 2026, provides up to $10 million in financing.

Under the revised terms, any subsequent drawdowns will be convertible at the lender's option into common shares at a conversion price per share equal to a 25% premium to the reference price. The reference price is defined as the greater of: (i) the average of the five daily VWAPs preceding the drawdown date, and (ii) a 5% premium to the market price at the time of the press release announcing the drawdown. Default interest, if applicable, will be capped at 24% per annum on the outstanding principal balance.

The first drawdown remains subject to definitive agreements and TSX Venture Exchange approval. Key unchanged terms include: conversion into units of one common share and 0.3 warrants at $0.15 per unit; each whole warrant exercisable at $0.195 for 48 months; 12% annual interest payable every four months; repayment of 10% at six months, 20% at 12 months, and 70% at maturity in 18 months; a 5% implementation fee; and a first-ranking security interest over the movable property of Charbone Hydrogène Quebec Inc. and Charbone Hydrogen Corporation.

Additionally, CHARBONE completed the full conversion of the September 2025 Convertible Replacement Debentures, totaling $2.05 million, which were issued on October 1, 2025. The company continues to advance its flagship Sorel-Tracy project in Quebec as part of its strategy to build a network of clean hydrogen production facilities across North America. More details are available at www.charbone.com.