Netcapital to Tokenize Hydrogen Drilling Assets

Rhea-AI Summary

Netcapital (NASDAQ: NCPL) has engaged its first issuer to structure a securities-based tokenization of hydrogen drilling assets, signing PureWave Hydrogen (TSX.V: PWH) as the initial client for assets in the Mid-Continent Kansas shelf.

The company says this is its first potential revenue-generating real-world asset tokenization and is being developed as a repeatable template with a consistent fee structure and technology framework to pursue scalable, diversified platform revenue. Netcapital is evaluating additional issuers but notes there is no assurance discussions will lead to completed engagements.

Management frames the initiative as using regulated digital infrastructure to broaden investor access while maintaining investor protections.

News Market Reaction

-4.53%

10 alerts

-4.53% News Effect

-10.1% Trough in 28 hr 46 min

-$261K Valuation Impact

$5M Market Cap

0.2x Rel. Volume

On the day this news was published, NCPL declined 4.53%, reflecting a moderate negative market reaction. Argus tracked a trough of -10.1% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $261K from the company's valuation, bringing the market cap to $5M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Reality Check

Price: $0.6892 Vol: Volume 845,341 vs 20-day ...

low vol

$0.6892 Last Close

Volume Volume 845,341 vs 20-day average 2,976,188, with relative volume at 0.28x indicating subdued trading activity. low

Technical Shares at 0.838 are trading below the 200-day MA of 2.36 and remain 90.42% under the 52-week high.

Peers on Argus

NCPL rose 6.08% while peers showed mixed moves: GSIW +3.65%, ABTS +4.7%, MEGL +1...

NCPL rose 6.08% while peers showed mixed moves: GSIW +3.65%, ABTS +4.7%, MEGL +1.79%, MIGI -1.1%, and ZBAI flat, suggesting a stock-specific reaction to the tokenization news.

Historical Context

5 past events · Latest: Jan 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 06	AI asset acquisition	Positive	+3.2%	Acquisition of Iverson Design AI suite to enhance tokenization visuals.
Dec 15	Earnings update	Negative	+2.8%	Weak Q2 fiscal 2026 results with small revenue base and sizable losses.
Dec 08	Equity inducement grant	Negative	-21.7%	1,000,000-share inducement award with revenue-based vesting thresholds.
Dec 08	CEO appointment	Positive	-21.7%	New CEO and plan to expand into crypto and blockchain-enabled investments.
Nov 19	Blockchain platform deal	Positive	-37.1%	Partnership to integrate primary issuance with blockchain-native secondary trading.

Pattern Detected

Recent history shows multiple strategic blockchain/tokenization announcements often met with negative price reactions, while today’s first revenue-oriented tokenization client saw a positive move.

Recent Company History

Over the past months, Netcapital has pivoted toward digital securities and tokenization. On November 19, 2025, it announced plans to support blockchain-based digital securities and tokenized real-world assets, which coincided with a -37.13% move. Leadership and strategy changes on December 8, 2025 toward crypto and blockchain-enabled investments also saw sharp declines. More recently, the Rivetz acquisition and Iverson AI design asset purchase supported this shift, with modestly positive reactions of 2.75% and 3.2%. Today’s PureWave Hydrogen engagement fits this ongoing tokenization strategy.

Regulatory & Risk Context

Active S-3 Shelf · $50,000,000

Shelf Active

Active S-3 Shelf Registration 2025-10-21

$50,000,000 registered capacity

An effective Form S-3 shelf filed on October 21, 2025 registers up to $50,000,000 of various securities, including equity and debt, with $9,004,894.40 of unsold securities carried forward under Rule 415(a)(6). This provides flexibility for future capital raises via prospectus supplements.

Market Pulse Summary

This announcement marked Netcapital’s first securities-based tokenization engagement for hydrogen dr...

Analysis

This announcement marked Netcapital’s first securities-based tokenization engagement for hydrogen drilling assets, signaling tangible progress in its real-world asset strategy. It followed earlier moves to support blockchain-based digital securities and acquisitions aimed at crypto and AI capabilities. Recent SEC filings outlined a small revenue base, sizable losses, and going-concern language, alongside a $50,000,000 shelf registration. Investors monitoring this story would likely focus on deal conversion into fees and any subsequent capital-raising activity.

Key Terms

tokenized assets, securities-based tokenization, real-world asset tokenization, asset-backed projects

4 terms

tokenized assets financial

"today announced that it has engaged its first issuer of tokenized assets."

A tokenized asset is a digital representation of ownership or rights to a real-world or financial item—such as property, a bond, or a piece of art—recorded on a secure digital ledger. Think of it like turning an asset into many small, tradable tickets that can be bought, sold, or transferred more quickly and cheaply; for investors this can mean easier access, fractional ownership, greater liquidity, and faster settlement, but also introduces technology, legal and market risks.

securities-based tokenization financial

"to structure a securities-based tokenization of hydrogen drilling assets"

A method of creating digital tokens that represent ownership in a stock, bond or other regulated financial asset and recording them on a secure digital ledger. Think of it like turning a share into many tradable digital pieces so more people can buy small slices, trades can settle faster and costs can fall; because these tokens still represent regulated securities, they affect liquidity, access and legal risk for investors.

real-world asset tokenization financial

"represents its first potential revenue-generating real-world asset tokenization initiative"

Converting a physical or financial item—like real estate, artwork, or a bond—into digital tokens that represent ownership or rights on a secure digital ledger. Think of slicing a house into many small, tradable shares so more people can buy pieces, trades settle faster, and markets can become more liquid; investors gain easier access and flexibility but also face new legal, custody and technology risks.

asset-backed projects financial

"modernize capital formation for asset-backed projects by enabling compliant access"

Projects financed using specific assets—such as buildings, equipment, loans, or revenue streams—as the primary source of repayment and collateral. Think of it like lending money for a house or car: if the project can't pay back, the assets can be sold to recover value. Investors care because the presence and quality of those assets affect how safe the cash flows are, the likely recovery if things go wrong, and the yield they should expect.

AI-generated analysis. Not financial advice.

Signs PureWave Hydrogen as Initial Client

BOSTON, MA, Jan. 12, 2026 (GLOBE NEWSWIRE) -- Netcapital Inc. (NASDAQ: NCPL, NCPLW), a digital private capital markets ecosystem, today announced that it has engaged its first issuer of tokenized assets.

As part of this initiative, Netcapital has commenced work with PureWave Hydrogen Corp. (TSX.V: PWH), a company listed on the TSX Venture Exchange, to structure a securities-based tokenization of hydrogen drilling assets located in the Mid-Continent Kansas shelf.

Netcapital believes this engagement represents its first potential revenue-generating real-world asset tokenization initiative and is being developed as a repeatable template for future issuer engagements across additional asset classes. The Company intends to apply a consistent fee structure and technology framework across subsequent real-world asset tokenization projects in order to build a scalable, diversified stream of platform revenue over time. Netcapital is currently evaluating and in discussions with additional prospective issuers that may be suitable candidates for similar structures; however, there is no assurance that such discussions will result in completed engagements.

“The Company believes this project demonstrates how regulated digital infrastructure can modernize capital formation for asset-backed projects by enabling compliant access to a broader investor base. By structuring offerings that allow investors, subject to applicable regulations, to participate in project-level economic exposure, Netcapital aims to expand participation beyond traditional institutional or high-net-worth channels while maintaining investor protections,” said Rich Wheeless, CEO of Netcapital.

About Netcapital Inc.

Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company’s funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. The Company’s broker-dealer, Netcapital Securities Inc., is also registered with the SEC and is a member of FINRA.

Forward Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Investor Contact

800-460-0815 
ir@netcapital.com

FAQ

What did Netcapital (NCPL) announce on January 12, 2026 about tokenization?

Netcapital announced it engaged PureWave Hydrogen as its first issuer to structure a securities-based tokenization of hydrogen drilling assets in the Mid-Continent Kansas shelf.

How does the Netcapital tokenization deal with PureWave (PWH) affect NCPL's revenue plans?

Netcapital said this engagement represents its first potential revenue-generating real-world asset tokenization and will be developed as a repeatable template to build scalable, diversified platform revenue.

Will Netcapital use the same terms for future real-world asset tokenizations under NCPL?

The company intends to apply a consistent fee structure and technology framework across subsequent real-world asset tokenization projects.

Are additional issuers confirmed for Netcapital's tokenization platform (NCPL)?

Netcapital is evaluating and discussing additional prospective issuers, but stated there is no assurance those discussions will result in completed engagements.

What assets are being tokenized in the PureWave (PWH) engagement with Netcapital (NCPL)?

The engagement covers tokenization of hydrogen drilling assets located in the Mid-Continent Kansas shelf.