CHARBONE Hydrogen Announces a Second Closing of its $1M Non-Brokered Private Placement
Brossard, Quebec TheNewswire – December 3, 2024 Charbone Hydrogen Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) (“CHARBONE” or the “Company”), North America’s only publicly traded pure-play green hydrogen company, is pleased to announce the second closing of its $1M non-brokered private placement. The Company has secured an additional $0.163M with the closing of its second tranche, for a total amount of $0.818M, to accelerate the completion of its flagship green hydrogen production facility in Sorel-Tracy, Quebec, scheduled to begin operations in the coming weeks. The investment comes from four investors, including the Company ‘s CFO with a subscription of $0.045M.
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 $0.818M raised to date is part of a $1M equity private placement offering. The second tranche involved issuing 3,260,000 Units, with each Unit priced at $0.05 and consisting of one common share and one common share purchase warrant.
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
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 $1,630 and issued 32,600 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. 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 .
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the ” 1933 Act “) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
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CHARBONE Hydrogen Announces a Second Closing of its $1M Non-Brokered Private Placement, source
