CHARBONE CORPORATION Completes $1.5 Million Drawdown from Convertible Loan Facility

VARENNES, QUEBEC – September 8, 2026 – Leads & Copy – CHARBONE CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47) has successfully closed a $1.5 million drawdown from RiverFort Global Opportunities PCC Ltd, marking the completion of half of the second drawdown available under its up to $10 million secured convertible loan facility. This brings the total amount drawn by CHARBONE to $4.5 million since the initial drawdown of $3 million on April 29, 2026.

The convertible loan facility, initially announced on April 29, 2026, is structured as a multi-drawdown secured facility, with additional tranches subject to customary conditions and mutual agreement between CHARBONE and RiverFort. The Company may draw down an additional $1.5 million from the second drawdown provision, which is available until November 29, 2026, six months from the first drawdown closing. Further drawdowns totaling $4 million are also available over the term of the loan, contingent on mutual agreement and standard conditions.

The drawdowns are available for a three-year term, with each drawdown repayable over 18 months. The maturity date for the initial drawdown is October 29, 2027, and for the recent $1.5 million second drawdown, it is March 4, 2028. The loan carries an annual interest rate of 12%, payable in cash every four months, with a default interest rate capped at 24%.

The $1.5 million portion of the second drawdown is convertible at RiverFort's option into units comprising one common share of CHARBONE and 0.3 of a warrant, at a conversion price of $0.196875 per unit. Repayment terms stipulate that 10% of the principal is due after six months, 20% after twelve months, and the remaining 70% at maturity.

Warrants issued in connection with this drawdown will be exercisable at $0.236250 per share for a period of 48 months, up to a maximum of five years from the loan's closing date of April 29, 2026. The convertible loan is secured by a first-ranking hypothec over the movable property of CHARBONE’s subsidiaries involved in the Sorel-Tracy project and its broader corporate assets. An implementation fee of 5% of each drawdown amount has been paid in cash.

Proceeds from the $1.5 million drawdown are earmarked to accelerate the development of CHARBONE's clean ultra-high purity (UHP) hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital for near-term growth initiatives. CHARBONE is a vertically integrated industrial gases company focused on the production, distribution, and storage of clean UHP hydrogen and other strategic industrial gases, serving sectors such as semiconductors, artificial intelligence, data centers, pharmaceuticals, aerospace, and defense.

Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE, stated, “With this capital now closed, we are focused on execution to maintain our rapid pace of growth. The proceeds are being deployed directly toward our priorities at Sorel-Tracy and across our industrial gas platform, and we remain committed to delivering on the milestones we have communicated to our shareholders.”

RiverFort, an international business with offices in London, Australia, Gibraltar, Europe, and Canada, provides debt and equity capital to high-growth companies, having executed over US$15 billion in growth financing transactions.

Source: CHARBONE CORPORATION