Charbone Hydrogen Corporation (TSX-V:CH, OTCQB:CHHYF), a North American producer and distributor of ultra-high purity (UHP) hydrogen and industrial gases, announced the closing of a non-brokered private placement, raising gross proceeds of $3.1 million.
The company issued 23,614,286 units at $0.13125 per unit. Each unit consists of one common share and one common share purchase warrant. The warrants allow holders to purchase an additional share at $0.18 over 24 months, with an acceleration clause if the company’s share price reaches $0.30 for 10 consecutive trading days on the TSX Venture Exchange.
The proceeds from the offering will be used for the purchase and installation of Phase 1B hydrogen equipment at Charbone’s Sorel-Tracy site and for general working capital.
“We are excited to start the year 2026 with a strong improvement to our balance sheet and support shown by long-term investors in this private placement,” Charbone’s chief financial officer and corporate secretary, Benoit Veilleux, said in a statement.
“The completion of this financing provides Charbone with the resources for the Phase 1B at Sorel-Tracy site, increasing our clean UHP hydrogen production capacity by 4.5 times reaching almost 1 tonne per day.”
A finder’s fee of $247,950 was paid, and 1,889,143 finder’s warrants were issued to registered dealers who introduced specific subscribers. The units were primarily sold to one institutional investor in Germany, under a Section 12 Securities Act (Quebec) decision for qualified subscribers outside Quebec.