Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF) said it has amended its convertible debentures to extend maturities, reduce interest rates, and lower conversion prices, enhancing financial flexibility for its green hydrogen projects.
A new agreement modifies the terms of the C$1.2 million, 14% secured convertible debentures initially issued in a private placement.
Key changes include extending the maturity date from October 7, 2024, to October 31, 2025, and adjusting the convertible balance, including unpaid interest, from C$1.2 million to C$1.345 million.
Additionally, the annual interest rate is reduced from 14% to 12%, payable monthly.
Under the revised terms, the conversion price of the debentures has been lowered from C$0.40 to C$0.10 per share. Furthermore, 1.345 million new warrants will be issued, exercisable at C$0.10 per share for a period of 12 months.
These amendments are contingent upon the completion of a multi-million-dollar financing announced on March 18, 2024.
“The steps announced today meaningfully extend maturities and provide us with additional financial flexibility to execute our plans to deliver green hydrogen production facilities in both the US and Canada before year end,” said Benoit Veilleux, Charbone’s CFO and corporate secretary.
“We will continue to optimize our capital structure as we gain momentum and advance our first-mover advantages and shareholder interests.”
Charbone is North America's only publicly traded pure-play green hydrogen company.