Next Hydrogen Announces Aggregate of $1.5 million in Loans and Provides Corporate Update

Core Viewpoint - Next Hydrogen Solutions Inc. is entering into a loan agreement with existing directors and officers for an unsecured loan of $530,000 at an interest rate of 5.0% per annum, maturing in one year, to support working capital and general corporate purposes [1][5]. Loan Details - The loan will be advanced on July 23, 2025, prior to a $1 million loan from a commercial lender, which is still under negotiation [2]. - A set-up fee of $20,000 will be paid to the lenders in conjunction with the loan [1]. - The company will issue 214,140 common shares as bonus shares to the lenders at a deemed price of $0.495 per share, representing approximately 20% of the principal amount of the loan [3]. Conversion and Regulatory Approval - The loan may be converted into common shares at the option of the company, either on the maturity date or upon closing of an equity securities offering [4]. - The issuance of loan bonus shares and conversion shares is subject to approval from the TSX Venture Exchange (TSXV) [7]. Financial Strategy - The proceeds from the loan and the original loan are intended to bridge the company's financial position and maintain operations while evaluating long-term financial and strategic solutions [5][6]. - The company's board and management are committed to acting in the best interests of shareholders and stakeholders, with no definitive timetable for the completion of the financial review [6]. Insider Participation - The lenders include directors and officers of the company, constituting a related party transaction under Multilateral Instrument 61-101, with exemptions from formal valuation and minority shareholder approval requirements [9]. Company Overview - Next Hydrogen, founded in 2007, designs and manufactures electrolyzers for generating clean hydrogen, supported by 40 patents, aimed at decarbonizing transportation and industrial sectors [11].