CHARBONE Hydrogen Secures Oversubscribed $1M Private Placement to Advance Clean Hydrogen Infrastructure

CHARBONE HYDROGEN CORPORATION has announced the successful closing of its second and final tranche of a $1 million non-brokered private placement, with the offering ultimately raising $1.013 million and exceeding the company's original target. The additional $0.551 million secured in the second tranche brings the total financing to over $1 million, demonstrating strong investor interest in the company's vision for building North America's first clean Ultra High Purity hydrogen production and distribution network.

Dave B. Gagnon, CEO of CHARBONE, expressed satisfaction with the investor support, stating that the completion of this financing provides the company with resources to advance the re-installation of hydrogen equipment at the Sorel-Tracy site and continue building infrastructure supporting long-term growth strategy. The successful raise reflects investor confidence in CHARBONE's vision to deliver clean UHP hydrogen across North America while maintaining a disciplined, modular approach that reduces risk and positions the company as a key player in the transition to a low-carbon emission economy.

The second tranche involved issuing 9,183,334 Units at $0.06 per Unit, with each Unit consisting of one common share and one common share purchase warrant. Proceeds from the Equity Offering will be primarily allocated to the company's purchase of operating hydrogen equipment, re-installation at the Sorel-Tracy site, infrastructure development, and general working capital requirements. Each Warrant gives the holder the right to purchase one additional common share at an exercise price of $0.08 for 24 months following the closing date of the Offering.

The company paid a finder's fee of $22,160 and issued 369,333 finder's warrants to registered dealers related to the sale of specific Units to qualified subscribers introduced by such dealers. The Units were offered under the accredited investor exemptions of National Instrument 45-106 - Prospectus Exemptions, with the closing remaining subject to approval by the TSX Venture Exchange and other customary closing conditions. All securities issued under the Offering are subject to a statutory four-month and one-day hold period in Canada following the Closing Date.

This financing milestone represents a significant step forward for CHARBONE's strategic plan to establish a distributed network of green hydrogen production plants while diversifying revenues through helium and specialty gas partnerships. The company's modular approach aims to reduce risk and enhance flexibility in the rapidly evolving clean energy sector, positioning CHARBONE as an integrated company specializing in clean Ultra High Purity hydrogen and strategic distribution of industrial gases across North America and Asia-Pacific markets.