Takeaways

• Next Hydrogen plans to raise up to USD 21.7 million to scale electrolyzer production and move from R&D into full commercial operations.
• Lead investor Smoothwater Capital is set to become the largest shareholder, reshaping governance as the company targets global green hydrogen markets.
• The funding will support manufacturing expansion, next-generation system development, and a strategic shift toward commercial deployment.

Next Hydrogen is preparing to raise USD 14.5–21.7 million through a non-brokered private placement, marking a major step in its transition from long-term research and development to full commercial operations. The financing, led by Toronto-based Smoothwater Capital, aims to accelerate the Canadian company’s push into the rapidly growing green hydrogen market.

The placement, priced at CAD 0.45 per share, is expected to close on or around 28 November 2025, pending TSX Venture Exchange approval and other regulatory clearances. Next Hydrogen said subscription agreements already exceed CAD 20 million, backed largely by Smoothwater and existing shareholders.

Chair Allan MacKenzie said the board’s unanimous support reflects a turning point for the company. After years of focusing on technology development, he said the raise will help bring Next Hydrogen’s modular systems to customers at a commercial scale. The company has been positioning itself as a supplier of electrolyzer production solutions designed for renewable-powered hydrogen generation.

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Smoothwater Takes Strategic Lead

Smoothwater Capital, known for its activist and strategic investments, will become Next Hydrogen’s largest shareholder once the deal closes. Its CEO, Stephen Griggs, is set to become Executive Chair, giving the investor a central role in shaping the company’s direction.

Under TSXV rules, Smoothwater’s new status as a “control person” requires disinterested shareholder approval. Next Hydrogen said new investor rights agreements will formalize governance and oversight. Griggs noted that the firm views the company as ready to scale, with technology suited for industrial clients seeking low-carbon hydrogen supply. Partnerships with integrators will be a key part of the market strategy, he added.

Funding Technology and Manufacturing Growth

Proceeds from the financing will support a manufacturing scale-up across Next Hydrogen’s product line. The company plans to ramp up production of its NH150 electrolyzer while advancing development of the larger NH500 model. Management said they are following a capital-light model that relies on industrial partners to integrate systems into broader hydrogen solutions.

President and CEO Raveel Afzaal said the raise is expected to fund the company through the transition to cash-flow positivity. He highlighted the NH series’ strong technical performance, especially in projects using variable renewable power. Improving cost efficiency and system flexibility will remain priorities as customers face increasing pressure to decarbonize.

The funds will also support working capital needs, commercial deployment, and general corporate purposes. No commissions or finder fees will be paid.

Also Read: UK Govt. Shortlists 27 Green Hydrogen Projects

Regulatory Steps Ahead

All securities issued will be subject to a four-month hold period, and none will be registered under U.S. securities law. The company cautioned that the deal may not close as planned and remains subject to TSXV review.

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Source: ESG NEWS