CHARBONE HYDROGEN CORPORATION (TSXV: CH; OTCQB: CHHYF; FSE: K47) announced the signing of Replacement Debentures totaling $2,050,000, amending terms of its existing secured convertible debentures. The move, effective September 30, 2025, replaces the original debentures issued in a private placement of $1,746,366 principal amount, which carried a 12% annual interest rate and were convertible at $0.10 per share.
Under the new terms, the maturity date is extended from September and October 2025 to September 30, 2026. The convertible balance increases from $1.7 million to $2.1 million, maintaining the same 12% annual interest rate payable monthly. Additionally, the conversion price is reduced from $0.10 to $0.07 per share. The replacement debentures remain subject to TSX Venture Exchange approval.
Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE, stated, "These changes provide new financing flexibility to Charbone by extending significantly the maturities and provide us with additional financing to complete and execute the acquisition of the operational hydrogen production and refueling equipment, announced on September 5, 2025." He added that the company is continuously working to optimize its capital structure and advance its first-mover advantages and shareholder interests.
CHARBONE is an integrated company specializing in Ultra High Purity hydrogen and the strategic distribution of industrial gases across North America and the Asia-Pacific region. The company develops a modular network of green hydrogen production while partnering with industry players to supply helium and other specialty gases without building costly new plants. This approach aims to diversify revenue streams, reduce risks, and increase flexibility.
The announcement underscores CHARBONE's efforts to strengthen its financial position as it pursues growth in the hydrogen sector. By extending debt maturities and adjusting conversion terms, the company seeks to align its capital structure with operational milestones, including the acquisition of hydrogen production and refueling equipment. The restructuring provides near-term liquidity relief and potentially reduces dilution for existing shareholders at a lower conversion price.
Forward-looking statements in the release reflect management's expectations based on reasonable assumptions, but actual results may differ due to risks and uncertainties outlined in the company's filing statement on SEDAR. The company undertakes no obligation to update forward-looking information except as required by law.
For more information, visit www.charbone.com.
