Charbone completes issuance of replacement debentures

Executive Summary

• Charbone Hydrogen Corp. issued $2.05 million of new secured convertible debentures, replacing earlier tranches and extending the maturity to September 30 2026.
• The replacement debentures carry a 12% annual interest rate and a conversion price of C$0.07 per share (down from C$0.10).
• Proceeds will be used to accelerate cash flow for the acquisition of hydrogen production equipment, with a follow‑up announcement expected once the purchase closes.

Key Details

• Total amount issued: $2.05 million in replacement debentures (aggregate principal).
• Maturity: September 30 2026 (previously September 30 and October 31 2025).
• Interest rate: 12% per annum, unchanged from prior terms.
• Conversion price: C$0.07 per debenture share (reduced from C$0.10).
• Statutory hold period: Subject to the four‑month hold period under Canadian securities law.
• Previous issuances referenced:
• $400,000 tranche originally issued September 30 2023 (amended March 25 2025).
• $1,346,366 tranche originally issued October 7 2022 (amended January 29 2025).
• Use of proceeds: To accelerate cash inflow for the acquisition of hydrogen production equipment and related costs announced on September 5 2025.
• Future disclosure: Company will issue a press release in the coming days to announce closing of the equipment acquisition and commencement of dismantling.

Notable Quotes

(No direct quotes provided in the release.)