CHARBONE Secures $1.5M Drawdown from RiverFort to Accelerate Clean Hydrogen Growth

CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company, has closed a $1.5 million drawdown under its secured convertible loan facility with RiverFort Global Opportunities PCC Ltd. This drawdown represents half of the second tranche of up to $3 million available before the six-month anniversary of the initial drawdown, which closed on April 29, 2026.

The transaction is part of a broader $10 million convertible loan facility structured in multiple drawdowns. With this closing, RiverFort holds an aggregate of $4.5 million in principal under the facility. The remaining $1.5 million of the second drawdown may be advanced subject to mutual agreement, and additional tranches totaling $4 million are available over the loan term under customary conditions.

The proceeds are earmarked to accelerate development timelines for CHARBONE's clean ultra-high purity (UHP) hydrogen production plants, support capital expenditures and equipment deployment, and provide working capital for near-term growth initiatives. Benoit Veilleux, CFO and Corporate Secretary, emphasized the company's focus on execution, stating that the funds are being deployed directly toward priorities at Sorel-Tracy and across its industrial gas platform.

Key terms of the drawdown include a 12% annual interest rate payable in cash every four months, with default interest capped at 24%. The principal is convertible into units comprising one common share and 0.3 of a warrant at a conversion price of $0.196875 per unit. If not converted, repayment is scheduled at 10% after six months, 20% after twelve months, and the remaining 70% at maturity in 18 months. Each whole warrant entitles the holder to acquire an additional share at $0.236250 for up to 48 months, subject to a maximum of five years from the initial closing.

The facility is secured by a first-ranking hypothec over the movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation. An implementation fee of 5% of the drawdowns has been paid in cash.

This funding is part of CHARBONE's strategy to scale hydrogen production capacity and expand its industrial gas platform across North America. The company focuses on serving sectors such as semiconductors, AI data centers, pharmaceuticals, and aerospace, where UHP gases are critical. Its modular, decentralized approach aims to address supply gaps for mid-tier customers and support the transition to a lower-carbon economy.

CHARBONE is listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Stock Exchange. For more information, visit www.charbone.com.