CHARBONE closes $3.1 million private placement for hydrogen expansion

CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) completed a non-brokered private placement raising $3.1 million in gross proceeds, the company announced January 12.

The hydrogen and industrial gas producer issued 23,614,286 units priced at $0.13125 each. Each unit consists of one common share and one warrant allowing the purchase of an additional share at $0.18 within 24 months of closing.

The warrants include an acceleration clause requiring exercise within 30 days if the company's TSX Venture Exchange share price reaches $0.30 or higher for 10 consecutive trading days.

CHARBONE paid $247,950 in finder's fees and issued 1,889,143 finder's warrants to registered dealers. The units were distributed primarily to one institutional investor in Germany under Quebec securities regulations.

"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," said Benoit Veilleux, the company's CFO and Corporate Secretary.

The proceeds will fund equipment purchase and installation for Phase 1B hydrogen operations at the Sorel-Tracy facility in Quebec and general working capital needs.

The transaction remains subject to TSX Venture Exchange approval and other standard closing conditions. CHARBONE develops and produces ultra high purity hydrogen through a network of production facilities across North America.

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