Unlock stock picks and a broker-level newsfeed that powers Wall Street.
CHARBONE Hydrogen Secures Initial Tranche of US$6 Million in Convertible Notes

In This Article:

Funding Advances Two North American Green Hydrogen Facilities and Electrolyzer Orders Green Hydrogen Production Scheduled to Commence Within Weeks

BROSSARD, Quebec - (NewMediaWire) - December 4, 2024 - CHARBONE HYDROGEN CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47) (the "Company" or "CHARBONE"), North America's only publicly traded pure-play green hydrogen company, is proud to announce that it has closed a $2.1 million CAD (US$1.5M) unsecured convertible debt tranche to accelerate the funding of the construction of its first two green hydrogen production facilities located in Sorel-Tracy, Quebec and Detroit, Michigan, including orders of two electrolyzers for a total capacity of 5,0MW.

The Sorel-Tracy facility will serve as CHARBONE's flagship green hydrogen production site, with operations scheduled to begin in the coming weeks, following delivery of a pre-ordered electrolyzer in Q1 2025. Additionally, the implementation of a second green hydrogen project site is slated to be confirmed in the Detroit vicinity in the near future. In total, CHARBONE plans to build and deliver a network of sixteen (16) green hydrogen production facilities across North America by 2030.

The first tranche of the financing includes US$1.5 million (CA$2.1M) in gross proceeds through unsecured convertible notes with a 36-month term at a 12% annual interest rate, led by its US banker, maturing in December 2027 or convertible earlier, offered to one arm's length investor.

"Our ability to attract this significant investment solidifies CHARBONE's position as a first mover and leader in the North American green hydrogen market," said Dave Gagnon, Chief Executive Officer and Chairman of the Board. "With production at Sorel-Tracy imminent, we are focused on generating near-term revenue, delivering value to shareholders, and advancing our vision of a modular green hydrogen network. This funding ensures we can execute our aggressive growth strategy while meeting industrial best practices and stakeholder expectations."

The funds will be allocated to capital expenditures for engineering, equipment, infrastructure, and project management costs for the Sorel-Tracy and Detroit facilities. CHARBONE has placed US$1 million in deposits for two 2.5 MW electrolyzers from a leading global manufacturer with 17 years of experience and a proven track record. This industry leader, specializing in Alkaline and PEM technologies, has delivered over 300 units across five continents and holds more than 60 patents, with an annual production capacity exceeding 5 GW.