Charbone Hydrogen closes $3.1-million private placement

Executive Summary

• Charbone Hydrogen Corp. has closed a non-brokered private placement raising gross proceeds of $3.1 million.
• The financing is primarily intended to fund the purchase and installation of phase 1B hydrogen equipment at the Sorel-Tracy site, which will increase clean UHP hydrogen production capacity by 4.5 times to nearly one tonne per day.
• The company issued over 23.6 million units at 13.125 cents each, including warrants with specific acceleration rights, subject to TSX Venture Exchange approval.

Key Details

• Gross Proceeds: $3.1 million.
• Units Issued: 23,614,286 units.
• Price Per Unit: 13.125 cents.
• Warrant Terms: Each unit includes one common share purchase warrant.
  • Exercise Price: 18 cents per share.
  • Duration: 24 months after closing.
  • Acceleration Right: Warrants must be exercised within 30 days if the common share price on the TSX Venture Exchange is 30 cents or higher for 10 consecutive trading days.
• Use of Proceeds: Primarily for the purchase and installation of phase 1B hydrogen equipment at the Sorel-Tracy site and general working capital requirements.
• Finder's Fees: A fee of $247,950 was paid at closing.
• Finder's Warrants: 1,889,143 finder's warrants were issued to registered dealers for introducing qualified subscribers.
• Regulatory Status: Closing is subject to approval by the TSX Venture Exchange and other customary conditions.
• Investor Base: Distributed to qualified subscribers outside Quebec, mainly to one institutional investor in Germany, pursuant to a decision under Section 12 of the Securities Act (Quebec).

Notable Quotes

• "We are excited to start the year 2026 with a strong improvement to our balance sheet and support shown by long-term investors in this private placement," said Benoit Veilleux, chief financial officer and corporate secretary of Charbone. "The completion of this financing provides Charbone with the resources for the phase 1B at Sorel-Tracy site, increasing our clean UHP hydrogen production capacity by 4.5 times reaching almost one tonne per day."