Charbone amends, replaces debentures

Executive Summary

• Charbone Hydrogen Corp. has entered into replacement debentures totaling $2.05 million, amending the terms of its existing secured convertible debentures to provide additional financing flexibility.
• The transaction extends the maturity date to September 30, 2026, and increases the convertible balance from approximately $1.7 million to $2.1 million.
• The conversion price has been reduced from 10 cents to 7 cents per share, and the changes are subject to TSX Venture Exchange approval.

Key Details

• Transaction Structure: Replacement of existing secured convertible debentures via amendment.
• Aggregate Principal Amount: $2.05 million (increased from the original $1,746,366).
• Interest Rate: 12% per annum, payable monthly.
• Maturity Date: Extended from September 30 and October 31, 2025, to September 30, 2026.
• Conversion Price: Reduced from $0.10 per share to $0.07 per share.
• Convertible Balance: Increased from approximately $1.7 million to $2.1 million.
• Regulatory Status: Subject to approval by the TSX Venture Exchange.
• Use of Proceeds: To complete and execute the acquisition of operational hydrogen production and refuelling equipment (announced September 5, 2025).

Notable Quotes

• "These changes announced today to the existing debentures is providing a new financing flexibility to Charbone by extending significantly the maturities and provide us with additional financing to complete and execute the acquisition of the operational hydrogen production and refuelling equipment... As we gain momentum, we are continuously working towards optimizing our capital structure and advance our first-mover advantages as well as our shareholder interests." — Benoit Veilleux, Chief Financial Officer and Corporate Secretary