Charbone Hydrogene annonce des mise-a-jour sur le projet phare de Sorel-Tracy, franchissant plusieurs etapes cles cette semaine

Executive Summary

• Charbone Hydrogène provided a significant operational update on its flagship Sorel-Tracy project, confirming the completion of critical infrastructure connections (electricity and water) and the commencement of civil engineering works, with production targeted for autumn 2025.
• The company announced the closing of a debt-for-equity settlement totaling $118,095 CAD, issuing approximately 1.97 million shares to a non-affiliated supplier.
• Charbone also provided an update on the closing of $1.5 million USD in convertible notes, resulting in the issuance of 2,109,900 warrants to the placement agent.

Key Details

• Project Construction Update (Sorel-Tracy):

  • Electrical Interconnection: Hydro-Québec completed the electrical interconnection, connecting the distribution network to the first pole on-site following the installation of the measuring station three weeks prior. Power can now flow from the Hydro-Québec network to the production zone.
  • Water Infrastructure: The City of Sorel-Tracy completed excavation and installation of piping connecting the site to a 14-inch main water line, ensuring sufficient water capacity for all five planned phases of the project.
  • Civil Works: Heavy civil engineering machinery has arrived on-site. Geomatic surveyors have completed site marking for buildings and production areas in preparation for equipment arrival in the coming weeks.
  • Environmental Compliance: The Quebec Ministry of the Environment identified a rare/threatened plant species (Aristida ramosissima) on the property. Charbone, in collaboration with Tetra Tech, successfully relocated and protected the plant, dedicating a habitat for it on-site.
  • Production Timeline: CEO Dave Gagnon stated the company is maintaining its course for the start of production this autumn.

• Debt-for-Equity Settlement:

  • Total Value: $118,095 CAD.
  • Counterparty: A non-affiliated supplier.
  • Shares Issued: 1,968,254 common shares.
  • Conversion Price: $0.06 per share.
  • Terms: The settlement is subject to approval by the TSX Venture Exchange. All issued shares are subject to a four-month hold period under Canadian law.
  • Rationale: Management stated this approach is appropriate to progress toward production and manage cash flow prudently.

• Convertible Notes Update:

  • Original Instrument: $1.5 million USD (approx. $2.1 million CAD) in convertible notes announced on December 4, 2024.
  • Warrants Issued: 2,109,900 warrants issued to the placement agent.
  • Exercise Price: $0.10 per share (or equivalent in USD).

Notable Quotes

• "This update marks the achievement of three crucial steps for our team. We are proud of the progress made to date and are maintaining our course for the start of production this autumn." — Dave Gagnon, President and CEO