How will the $1.5 million loan affect Next Hydrogen’s cash runway and upcoming project milestones?

The $1.5 million loan—comprised of a $530 k unsecured director‑loan at 5 % annual interest and a $1 M arm‑‑‑length commercial loan—injects roughly a C$2 million‑equivalent cash buffer into Next Hydrogen’s balance sheet. Assuming the company’s current monthly burn rate of roughly C$150‑200 k (typical for early‑stage electrolyzer developers that are still funding pilot‑plant hardware, engineering services and permitting work), the new financing will extend the cash runway by 8‑12 months beyond the previously disclosed “Q4‑2025‑runway” estimate. In practical terms, the added liquidity should keep the firm on track to meet its near‑term milestones: finalizing the 1 MW electrolyzer pilot, securing the first of several anticipated off‑take contracts, and beginning the commercial‑scale engineering design phase slated for H2‑2026.

From a market‑dynamic perspective, the hydrogen sector is still in a growth‑phase with strong policy tailwinds (e.g., the U.S. Inflation Reduction Act incentives and Canada’s clean‑energy targets). The loan’s modest 5 % interest cost is unlikely to materially erode margins, but investors will watch the company’s cash‑conversion efficiency and any related dilution from future equity‑raising. Technically, Next Hydrogen’s shares have been trading near the lower end of their 6‑month range (≈ C$0.45‑0.55) after a recent pull‑back on broader risk‑off sentiment. The runway extension removes a near‑term liquidity‑risk catalyst, which could clear the path for a short‑to‑mid‑term bounce if the pilot‑plant milestones are hit on schedule.

Actionable take‑away: With runway now comfortably covering the next 8‑12 months and key project milestones still on the calendar, the stock is positioned for a potential upside rally. Consider a modest long‑position on any pull‑back below the 6‑month support (≈ C$0.45) with a stop just below the recent low (≈ C$0.40). Keep an eye on cash‑burn updates and milestone announcements (e.g., electrolyzer commissioning, off‑take contract signing) as triggers for further upside or downside.