Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF) announced that it has closed the second and final tranche of its non-brokered private placement, raising an additional $551,000.
The financing brought the total gross proceeds to approximately $1.013 million, exceeding the company’s original $1 million target.
The company said proceeds from the offering will be used primarily to purchase operating hydrogen equipment, reinstall it at the company’s Sorel-Tracy site in Quebec, support infrastructure development, and provide general working capital.
“We are very pleased with the strong interest and support shown by investors in this private placement, which exceeded our original target,” Charbone CEO Dave Gagnon said in a statement.
“The completion of this financing provides Charbone with the resources to advance the re-installation of our hydrogen equipment at the Sorel-Tracy site and continue building the infrastructure that underpins our long-term growth strategy."
The second tranche involved the issuance of 9,183,334 units priced at $0.06 each. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable at $0.08 for a period of 24 months following the closing date.
Charbone paid a finder’s fee of $22,160 and issued 369,333 finder’s warrants to registered dealers in connection with the sale of certain units to qualified investors.