CHARBONE Hydrogen Corp., a company focused on green H₂ production and distribution, has signed an asset purchase agreement to acquire operational H₂ production and refueling equipment in Quebec. The strategic acquisition will enable CHARBONE to fast-track the commissioning of CHARBONE’s flagship Sorel-Tracy facility phase 1 and empower CHARBONE to produce and deliver first industrial high-purity H₂ (UHP) sales in the upcoming quarter.

The equipment currently in use will be dismantled, repurposed and relocated to Sorel-Tracy. This transaction follows CHARBONE’s signing of a non-dilutive $50-MM construction capital facility announced on May 1 and June 4, 2025. While this facility is earmarked for broader project financing rather than this equipment purchase, it demonstrates CHARBONE’s strengthened capital position and ability to scale up its overall development plan.

Key Investor Highlights

• Accelerated timeline: Repurposing proven operating equipment reduces installation costs of new equipment—enabling production by early Q4 2025.
• Selection process: CHARBONE has been selected as the buyer of the equipment by accepting $1 MM in CHARBONE stock as part of a portion of the purchase price at an issue price equal to the market price of CHARBONE’s shares on the TSX Venture Exchange on the effective date plus a cash balance payable in 3 tranches payment, with one-third payment on the effective date and the remaining paid over 2 yr preserving cash for growth.
• Operational progress: Grid connection is completed; Hydro-Québec installed the energy meter on July 22, and completed the interconnection on August 13, while the Town of Sorel-Tracy completed the water connection to its main system, providing the site with the two elements needed for H₂