CORRECTED: CHARBONE Hydrogen is Acquiring Hydrogen Production Assets and Closing a First Tranche of $1M Private Placement Financing

Core Viewpoint - CHARBONE Hydrogen Corporation has signed an Asset Purchase Agreement to acquire operational hydrogen production and refuelling equipment in Quebec, which will expedite the commissioning of its Sorel-Tracy facility and enable the company to produce and deliver its first industrial high purity hydrogen sales in the upcoming quarter [1][8]. Group 1: Acquisition and Financial Position - The acquisition involves dismantling, repurposing, and relocating existing equipment to Sorel-Tracy, which will reduce installation costs and allow for production by early Q4 2025 [2][4]. - CHARBONE has secured a non-dilutive USD 50 million construction capital facility, enhancing its capital position and ability to scale its development plan [2]. - The company has completed a $1 million non-brokered private placement, with $0.5 million already secured to accelerate the completion of its flagship facility [3][5]. Group 2: Operational Progress and Strategy - The grid connection and water connection necessary for hydrogen production have been completed, indicating significant operational progress [4]. - The acquisition is structured to preserve cash flow, with part of the purchase price paid in CHARBONE stock and the remainder in cash over two years [4][7]. - This strategic move positions CHARBONE to deliver green and high purity hydrogen to industrial customers more quickly, leveraging proven operating equipment [7][8]. Group 3: Market Position and Future Outlook - The acquisition marks a turning point for CHARBONE, allowing the company to generate its first hydrogen revenues and capture early-mover advantages in the North American green hydrogen market [8]. - CHARBONE is focused on developing a modular network for green hydrogen production while partnering with industry players to diversify revenue streams and reduce risks [9].