Charbone Hydrogen Secures $1M Financing to Accelerate North American Expansion
Hydrogen company in Quebec secures $0.7M toward the completion of its flagship green hydrogen production facility. This move is a part of the company’s plan to establish sixteen facilities across North America in the next six years. The funds secured is a part of a $1M equity private placement offering.
CHARBONE HYDROGEN CORPORATION, North America’s only publicly traded pure-play green hydrogen company, is pleased to announce the first closing of its $1M non-brokered private placement. The Company has secured $0.7M to accelerate the completion of its flagship green hydrogen production facility in Sorel-Tracy, Quebec, scheduled to begin operations in the coming weeks.
CHARBONE’S Hydrogen Vision
CHARBONE’s Sorel-Tracy, Quebec project will serve as the Company’s flagship green hydrogen facility, establishing CHARBONE as a leader and first mover, with production expected to start in few weeks, shortly after the pre-ordered and ready for shipment electrolyzer has been shipped and delivered to the site. CHARBONE plans to build and deliver a network of sixteen (16) green hydrogen production facilities across North America by 2030.
The $0.7M raised to date is part of a $1M equity private placement offering. The first tranche involved issuing 13,100,100 Units, with each Unit priced at $0.05 and consisting of one common share and one common share purchase warrant. A second tranche for the remaining $0.3M may close by December 12, 2024.
Confidence in CHARBONE
“This financing reflects growing confidence in CHARBONE’s leadership in North America’s green hydrogen sector,” said Dave Gagnon, CEO and Chairman of CHARBONE Hydrogen. “We are on track to commence production and deliver near-term revenue, while pursuing our vision to establish a network of 16 modular hydrogen production facilities by 2030.”
Proceeds from the financing will be primarily allocated to:
- Engineering and construction at Sorel-Tracy facility
- Equipment procurement and infrastructure development
- Project management and preparation for a larger financing round
Shares Breakdown
Each of the units offered (each a “Unit”), priced at $0.05 per Unit, was comprised of one common share of the Company (each, a “Unit Share”) and one common share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional common share of the Company at an exercise price of $0.05 for a period of 12 months following the closing date of the Offering (the “Closing Date”).
At the Closing Date, the Company paid a finder’s fee of $17,350 and issued 347,000 finder’s warrants to registered dealers in connection with sale of certain Units to qualified subscribers introduced to the Company by such dealers. The Units were offered by way of the “accredited investor” exemptions under National Instrument 45-106 – Prospectus Exemptions (in Québec, Regulation 45-106 – Prospectus Exemptions). However, the Company reserves the right not to accept subscription amounts of less than $5,000 (100,000 Units) to avoid disproportionate administrative costs.
The closing of the Equity Offering remains subject to the approval of the TSX Venture Exchange and other customary closing conditions. The Company may close a second tranche in the coming days, but no later than December 12, 2024. All securities issued pursuant to the Offering are subject to a statutory four month and one day hold period in Canada following the Closing Date.
