CHARBONE Secures $6 Million for Green Hydrogen Facilities, Production Imminent

CHARBONE Hydrogen Corporation, the only publicly traded pure-play green hydrogen company in North America, announced the closing of a US$1.5 million (CA$2.1 million) initial tranche of convertible debt financing. This significant investment fuels the construction of Charbone’s first two green hydrogen production facilities in Sorel-Tracy, Quebec, and Detroit, Michigan.

Early Green Hydrogen Production in North America

The funding accelerates the development of these facilities, with production at Sorel-Tracy, Charbone's flagship site, expected to begin "in the coming weeks" following the delivery of a pre-ordered electrolyzer in Q1 2025. The Detroit location will be confirmed "in the near future."

Charbone's ambitious vision involves building a network of 16 green hydrogen production facilities across North America by 2030.

The initial tranche consists of unsecured convertible notes with a 36-month term and a 12% annual interest rate. The notes are convertible into Charbone common shares at a price of $0.10 CAD (USD equivalent).

Leadership and Strategy

"Our ability to attract this significant investment solidifies Charbone’s position as a first mover and leader in the North American green hydrogen market," declared Dave Gagnon, CEO and Chairman. "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 allows Charbone to execute its aggressive growth strategy while adhering to industry best practices and stakeholder expectations.

Capital Allocation and Equipment

The funds will be directed towards engineering, equipment, infrastructure, and project management costs for both facilities. Notably, Charbone secured US$1 million in deposits for two 2.5 MW electrolyzers from a leading global manufacturer with a proven track record.

The initial tranche is part of a larger private placement led by Charbone’s US banker, targeting an aggregate principal amount of up to US$6 million in convertible notes.

Charbone paid a placement agent fee of 10% (US$0.15 million) in cash and issued five-year equity warrants for 10% (1,500,000 warrants) exercisable at CA$0.10 per common share. Both the convertible notes and warrants are subject to a four-month restrictive legend. The private placement awaits final approval from the TSX Venture Exchange and customary closing conditions. A second tranche closing is expected "in the coming days, but no later than January 3, 2025."

Charbone is an integrated green hydrogen company dedicated to creating a network of modular production facilities across North America. Utilizing renewable energy, Charbone produces environmentally friendly hydrogen for industrial, institutional, commercial, and future mobility applications.