The offering is expected to close around 28 November and is tabled to raise between CAD $20m and CAD $30m ($21.4m), with shares priced at CAD $0.45 ($0.32).
Next plans to use the proceeds to accelerate sales and manufacturing of its alkaline hydrogen production technology.
“We believe this will fully realise the potential of the innovative technology the team has developed over the past decade,” said Chair Allan MacKenzie.
The firm said it would market its existing 150Nm3/h NH150 systems, while completing the development of its megawatt-class NH500 electrolyser.
Earlier this year, Next announced it would look to lean on an “Asian electrolyser manufacturer” to scale up production by using its existing facilities.
“We will focus on selling our products with a capital-light business model leveraging our existing relationships with significant Canadian and global companies,” said President and CEO Raveel Afzaal.
The deal will come as a lifeline after the firm’s cash balance fell to just CAD $1.8m ($1.28m) by 30 June, leading it to secure CAD $1.5m ($1.07m) in loans.
Smoothwater, which has a portfolio of banking and land development investments, said it believes the company is ready to shift from R&D to a “commercially driven business.”
“By concentrating on key priorities and partnering with other exceptional companies, Next Hydrogen will maximise its potential,” said Smoothwater CEO Stephen Griggs.
“This will include focusing on the sale of electrolysers through partners who will integrate them into their larger solutions using hydrogen as a key input to accelerate our global sales.”
Hydrogen electrolyser consolidation: The wave reshaping the industry
There is a black hole of consolidation out there, beginning to suck all things related to hydrogen electrolyser value chains into it.
Horizontal and vertical integration within electrolyser production and deployment will accelerate towards the end of this decade. When several of the larger dominoes topple in rapid succession, it will rapidly escalate into a race to the finish line.
We may find that we are 80% through this consolidation play by 2030…
Click here to keep reading.
