WINDSOR,
ON, Jan. 8, 2025 /CNW/ - NEXE Innovations Inc.
("NEXE" or the "Company") (TSXV: NEXE) (Frankfurt: NX5) (OTC:
NEXNF), a compostable and innovative materials company, is pleased
to present its corporate achievements for 2024. We believe we have
laid a robust foundation for sustainable growth as a company
committed to providing high-performance compostable solutions for
different sectors and products. Our key focus is to provide our
customers with eco-friendly solutions that go head-to-head with
plastic.
Expanding Market Reach and Strategic Partnerships
- U.S. Market Entry with EKOCUPS: NEXE delivered
multiple shipments of its compostable coffee pods to EKOCUPS, a
high-volume Amazon retailer and online distributor, providing a
solid entry into the largest single-serve pod market.
- Bridgehead Coffee Partnership: We expanded our
collaboration with Bridgehead Coffee, an established retail company
in Canada, delivering additional
SKUs and entering a multi-year master manufacturing agreement.
- ecoBeans Relaunch: Partnered with ecoBeans Coffee
for their successful product relaunch, supplying compostable pods
to retail and Office Coffee Services (OCS) markets.
Enhancing Manufacturing Capabilities
- Windsor Facility Integration: We consolidated
operations in Windsor, Ontario,
after selling our Surrey facility
for $5.7 million. This vertically
integrated facility streamlines production, ensures quality
control, and positions us to scale rapidly across different
verticals.
- In-House R&D Capabilities: As part of vertically
integrating our operations to control quality, protect our patents
and trade secrets, optimize logistics, and be close to key markets,
NEXE used the opportunity to build an in-house tool shop that will
minimize machine downtime and play an important role in our R&D
strategy. In our view, the ability to develop prototypes and test
in-house will allow NEXE to build customized solutions faster and
shorten the product development cycle. We are currently working on
additional products for different markets.
Innovating for Sustainability
- Expanded IP Portfolio: NEXE secured five new
patents in Canada and the U.S.,
which we expect will enhance our competitive edge in manufacturing
fully compostable coffee pods. Innovations include increased filter
area for higher coffee extraction and pods designed for
multi-ingredient beverages.
- BPI Certification: Our flagship product, the NEXE
Pod, continues to meet rigorous compostability standards, providing
an eco-friendly alternative compatible with popular brewing
systems.
Strengthening Financial Position
- Enhanced Cash Position: NEXE exits 2024 with a
solid balance sheet and cash position. At the end of our last
reported fiscal quarter, NEXE had a cash position of $15.7 million, including the net cash proceeds
from the sale of our Surrey
facility. NEXE's debt position is minimal, with its long-term debt
outstanding at $575,066, being an
interest-free loan with the federal government. NEXE's commitments
at the end of the quarter were $1.77
million. In 2025, we believe our solid financial position
will ensure that we can continue to focus on building revenues and
investing in R&D and new products. We continue to take a
disciplined approach to managing costs and ensuring we invest in
areas that will provide the best use for our capital and optimal
returns in the long term.
- OTCQB Listing: Trading approval on the OTCQB market
has expanded our visibility and accessibility to U.S.
investors.
Leadership and Strategic Guidance
- Appointment of Tom
Hoyne: As a strategic advisor, Tom Hoyne brings over 35 years of expertise in
the coffee and food manufacturing industries, further strengthening
our leadership team.
- Focused on Building the Team: As we scale and
invest in developing additional compostable solutions, we will
continue to add experts to our team.
What to expect in 2025
- Expanding Business-to-Business (B2B) Coffee
Segment: The Company continues to have a strong pipeline
with increasing inbound inquiries from coffee companies and
roasters. In management's opinion, focusing on a
business-to-business strategy will allow the Company to scale
faster, ensuring a competitive return on capital for its coffee
segment. From our initial experience developing relationships and
entering partnerships, this process can take several months to over
a year. We are focused on building the right partnerships that will
allow us to build market share across various distribution channels
that we can grow. The Company is exiting its branded coffee
business, NEXE Coffee, to focus on building relationships directly
with coffee companies and brands.
- At the Forefront of Sustainable Innovation: We remain
committed to scaling our B2B coffee segment as demand grows,
ensuring we maximize opportunities across all markets we serve. At
the same time, our journey of applying our proprietary resin
technology to the coffee industry has provided us with certain
invaluable insights and a robust foundation for growth. While the
coffee pods segment presented unique challenges, such as
withstanding heat and pressure in a coffee machine, these obstacles
have honed our expertise and strengthened our IP. Leveraging this
experience, we believe we are poised to expand into more
significant, diverse segments where these complexities are less
prevalent. The Company has developed product prototypes, researched
different verticals, and tested and worked with key decision-makers
and buyers for new sectors.
"This is a transformative time for NEXE Innovations. The
milestones we reached in 2024 are the launchpad for an exciting new
chapter. In 2025, we are excited to showcase the groundbreaking
work our team has accomplished, setting the stage for a future
where sustainable solutions lead the market," said Ash Guglani,
President of NEXE.
Positioned for Future Success
NEXE has demonstrated its ability to attract key partners,
enhance its intellectual property, and streamline manufacturing to
meet the growing demand for sustainable products. These milestones
reflect our commitment to delivering shareholder value and
positioning us as a sustainable solutions leader.
To read additional details on our 2024 accomplishments, visit
us at NEXE Innovations News & Insights
About NEXE Innovations Inc.
NEXE Innovations is focused on providing innovative compostable
material solutions and packaging to the B2B segment to help
businesses achieve their sustainability goals. NEXE Innovations has
developed a proprietary and patented compostable material that can
withstand heat, pressure, and water. Our flagship product, the NEXE
Pod, a BPI-certified compostable coffee pod, showcases our
material's durability and is an ideal substitute for plastic.
The NEXE pod is compatible with major coffee brewing machines
and is manufactured at NEXE's vertically integrated facility based
in North America. Discover our
innovative approach to sustainability at www.nexeinnovations.com
and join our journey on social media @nexeinnovations.
#compostablecoffeepods #sustainability #greentech
On behalf of the Company:
Ash Guglani
President & Director
For investor relations contact:
Kam Mangat
VP, Investor Relations & Corporate Strategy
invest@nexeinnovations.com
Office +1-604-359-4725
Mobile +1-604-359-4742
For media relations contact: media@nexeinnovations.com
*NEXE Innovations Inc. is not affiliated with, endorsed, or
sponsored by Keurig®. Keurig® is a registered
trademark of Keurig Dr Pepper Inc.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking
statements or information, which include, but are not limited to,
statements in respect of the Company's research and development
plans including the development of prototypes and inhouse testing,
addition of industry experts to the NEXE management or advisory
teams, the Company's pipeline of B2B coffee companies and roasters,
the increase of the Company's market share across various
distribution channels, the Company's exit from its branded coffee
business, the Company's expansion into diverse segments, the
Company's overall business strategy, increases in production and
revenue, and the Company's long-term growth and development plans.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
information can generally be identified by the use of
forwarding-looking wording such as "may", "expect", "estimate",
"anticipate", "intend", "believe" and "continue" or the negative
thereof or similar variations. The reader is cautioned that
assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as
a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including but not limited to, the Company's ability to execute on
its business strategy, the acceptance of the Company's products in
other industries, continued interest in the Company's product from
B2B coffee companies and roasters and those risks set out in the
Company's management's discussion and analysis for year ended
May 31, 2024 under the headings "Risk
and Uncertainties". Such statements and information are based on
numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in
the future, including the demand for its products, anticipated
costs, and the ability to achieve goals. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include receipt of necessary approvals
and general economic, market or business conditions.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The reader is
cautioned not to place undue reliance on any forward-looking
information.
The forward-looking statements contained in this news release
are made as of the date of this news release. Except as required by
law, the Company disclaims any intention and assumes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nexe-innovations-2024-corporate-update-a-year-of-strategic-progress---setting-the-stage-for-sustainable-growth-302345188.html
SOURCE Nexe Innovations Inc.