Charbone completes hydrogen asset acquisition

Executive Summary

• Charbone Hydrogen Corp. has taken possession of hydrogen production and refuelling assets from Harnois Energies Inc., enabling the start of clean ultrahigh‑purity (UHP) hydrogen production at its Sorel‑Tracy facility by early Q4 2025.
• The consideration consists of 13,333,334 Charbone common shares issued at C$0.075 per share (≈C$1 million) plus additional cash payments to be made in staged tranches over two years.
• The transaction is expected to significantly reduce capital installation costs and accelerate time‑to‑market compared with building new systems, positioning Charbone as Quebec’s leading clean UHP hydrogen supplier.

Key Details

• Asset Transfer: Hydrogen production and refuelling assets transferred from Harnois Energies Inc. to Charbone Hydrogen Corp.
• Equity Consideration: 13,333,334 Charbone common shares issued at C$0.075 per share, representing approximately C$1 million in equity value paid to Harnois.
• Cash Component: Additional cash payments will be made in staged tranches over a two‑year period (specific amounts and schedule not disclosed).
• Operational Impact: Assets will be relocated and repurposed at Charbone’s flagship Sorel‑Tracy facility, targeting the first clean UHP hydrogen production by early Q4 2025.
• Capital Efficiency: Use of proven, operational assets is expected to lower capital installation costs and accelerate market entry versus deploying new equipment.
• Strategic Alignment: Harnois elected to receive a substantial portion of consideration in Charbone equity, reflecting confidence in Charbone’s long‑term growth prospects.
• CEO Quote: “This is a transformative moment for Charbone… we will begin producing clean UHP hydrogen in Sorel‑Tracy much sooner than anticipated while optimizing capital efficiency.” – Dave B. Gagnon, CEO.

Notable Quotes

• “We are proud to welcome Harnois as a shareholder in the capital of Charbone.” – Dave B. Gagnon, Chief Executive Officer.