Next Hydrogen Closes $20.7M Equity Private Placement led by Smoothwater Capital Corporation

Core Viewpoint - Next Hydrogen Solutions Inc. has successfully closed a non-brokered private placement, raising approximately CAD$20.7 million through the issuance of 46,069,198 common shares at CAD$0.45 per share, marking a significant milestone in its transition to a commercially focused business delivering hydrogen electrolyzers [1][3][4] Financing and Shareholder Structure - The private placement was led by Smoothwater Capital Corporation, which has become the largest shareholder of Next Hydrogen, holding approximately 47.9% of the issued common shares, ensuring Canadian ownership and control [2][14] - A total of 42,323,590 common shares were issued for gross cash proceeds of approximately CAD$19.0 million, with no finder's fees or commissions paid [10][11] Business Strategy and Product Development - The net proceeds from the offering will be utilized to support the sales and production of the NH-150 electrolyzer and the development of the larger NH-500 system, aimed at unlocking substantial industrial opportunities [4][6] - Next Hydrogen's technology is designed for scalable deployment and direct integration with renewable energy sources, enhancing its competitive edge in the clean hydrogen market [5][6] Regulatory Environment and Market Position - The Canadian government is advancing supportive frameworks for clean hydrogen, including an investment tax credit of up to 40% for eligible projects, creating a favorable regulatory environment for the industry [8] - Next Hydrogen is positioned as a clean-technology champion in Canada, with the potential to support domestic energy security and provide globally competitive hydrogen solutions [6][7] Leadership Changes - Following the offering, Stephen Griggs from Smoothwater joined as Executive Chair of the Board, bringing extensive experience in operational discipline and governance [9][10] - Paul Currie, a seasoned business executive, also joined the Board, contributing significant global experience to guide the company in its transition to a commercial product-focused business [9][10] Technology and Market Applications - Next Hydrogen's pressurized alkaline electrolyzers are validated as commercially deployable solutions, delivering high performance and exceeding U.S. DOE targets for green hydrogen production [5][6] - The modular architecture of Next Hydrogen's systems supports deployment across various project sizes and applications, including industrial decarbonization and energy storage [6]