Next Hydrogen Solutions Inc. announced the closing of two loans totaling 1.1 million US dollars. One of these loans comes from a group of internal executives, while the other was granted by an independent commercial lender. These financings aim to support the company’s operational continuity and preserve its skilled workforce in a context of strategic uncertainty.
The first unsecured loan, amounting to 390,000 US dollars, was advanced on July 23, 2025, by certain directors and executives of the company. It carries an annual interest rate of 5.0% and will mature one year after its inception. On this occasion, the company issued 214,140 common shares as compensation, at a deemed price of 0.36 US dollars per share, representing approximately 20% of the loan amount.
Loan conditions and conversion options
In addition to the bonus shares, the lenders will also receive a set-up fee of 15,000 US dollars on the maturity date. This internal loan immediately preceded a second financing of 740,000 US dollars, granted by an unrelated commercial creditor. The terms of this second loan have not been disclosed.
Subject to the approval of the TSX Venture Exchange (TSXV), the company may, at its discretion, convert all or part of the initial loan into common shares. Such conversion, if exercised, would take place either at maturity or upon the closing of an equity securities offering.
Purpose of financing and outlook
The funds raised will be allocated to general working capital and corporate purposes. According to management, this strategy aims to maintain ongoing operations while allowing the company to evaluate more sustainable financial and strategic options.
The board of directors and management team indicated they are conducting a thorough review of these alternatives, stating their commitment to act in the interest of the company and its stakeholders. No timetable has been provided for the completion of this process, and no further comments will be made unless a transaction has been approved or disclosure is deemed necessary.
Regulatory framework and compliance notice
Any conversion of the loan into common shares will require all applicable regulatory approvals, including that of the TSXV. The TSXV has not expressed any opinion on the terms or the relevance of the two loans announced.
All amounts mentioned in this release are expressed in US dollars.
