Charbone talks up milestone hits at Sorel-Tracy site

Executive Summary

• Charbone Hydrogen Corp. provided a significant operational update on its flagship Sorel-Tracy project, confirming the completion of critical infrastructure milestones including electrical interconnection with Hydro-Quebec and water supply installation, positioning the site for production commencement this fall.
• The company closed a debt settlement transaction, issuing 1,968,254 shares to settle $118,095 in payables with an arm's-length supplier at a conversion price of six cents per share.
• Charbone announced the issuance of 2,109,900 warrants to the placement agent following the closing of $1.5 million (U.S.) in convertible notes, with each warrant exercisable at 10 cents per share.

Key Details

• Electrical Interconnection: Hydro-Quebec completed the electrical interconnection, connecting the distribution network to the first pole on site following the installation of the metering station three weeks prior. Energy can now flow from the grid to the production area.
• Water Supply: The Sorel-Tracy Water Department finished excavating and installing piping to link the site to a 14-inch main water line, ensuring sufficient capacity for all five planned project phases.
• Civil Construction: Heavy civil construction equipment has arrived, and contractors have begun work. Surveyors have completed site markings for buildings and production areas in preparation for production equipment arrival.
• Environmental Stewardship: The Quebec Ministry of the Environment identified a rare Three-awn grass on the property; Charbone collaborated with Tetra Tech to relocate and protect the species on-site.
• Debt Settlement Financing:
  • Transaction: Settlement of payables through the issuance of shares.
  • Amount Settled: $118,095.
  • Shares Issued: 1,968,254 shares.
  • Conversion Price: Six cents ($0.06) per share.
  • Counterparty: Arm's-length supplier.
  • Conditions: Subject to TSX Venture Exchange approval; securities subject to a statutory four-month hold period.
• Convertible Notes Financing Update:
  • Context: Closing of $1.5 million (U.S.) ($2.1 million CAD) in convertible notes announced on Dec. 4, 2024.
  • Warrant Issuance: 2,109,900 warrants issued to the placement agent.
  • Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of 10 cents (or USD equivalent).

Notable Quotes

• "This update marks the completion of three critical milestones for our team," said Dave Gagnon, president and chief executive officer of Charbone. "We are proud of the progress to date and remain on track to commence production this fall."