Next Hydrogen closes $20.7 million private placement led by Smoothwater

Next Hydrogen Solutions Inc. (TSXV: NXH) completed a $20.7 million private placement of 46.1 million common shares at CAD$0.45 per share, according to a company statement.

The financing was led by an affiliate of Toronto-based Smoothwater Capital Corporation, which became the company's largest shareholder with approximately 47.9% of outstanding shares. The transaction ensures Next Hydrogen remains Canadian owned and controlled.

The proceeds will support sales and production of the company's NH-150 electrolyzer and development of the larger NH-500 system. Additional funds will go toward customer engagement, channel-partner relationships, and general corporate purposes.

Stephen Griggs, CEO of Smoothwater, joined as Executive Chair of the Board following the closing. Paul Currie also joined the board as a director. Susan Uthayakumar left the board after the transaction completed.

The offering included 42.3 million shares for gross cash proceeds of approximately CAD$19.0 million. The company concurrently settled CAD$560,527 in debt with directors and officers through the issuance of 1.2 million shares, and converted CAD$1.1 million in debentures into 2.5 million shares, both at the offering price.

Next Hydrogen manufactures hydrogen electrolyzers that use water and electricity to generate hydrogen. The company was founded in 2007 and holds 40 patents related to its cell design technology.

Under an investor rights agreement, Smoothwater can nominate up to three directors while it maintains at least 30% ownership. Griggs will receive 1 million stock options and his controlled corporation will receive CAD$225,000 annually in management fees.

All securities issued are subject to a four-month hold period ending April 18, 2026.

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