The Surrey Facility cost $2.4 million, including tenant improvements, and was debt-free. NEXE has a solid cash position of over $10 million as of Q3 2024 and the additional non-dilutive $5.7 million cash proceeds will be invested in operations, sales, and marketing.
The vertically integrated Windsor Facility will be the primary location for operations and is a key part of the strategy. Each part of the manufacturing process, including the proprietary plant-based resin, will be manufactured in-house.
WINDSOR, ON, July 31, 2024 /CNW/ - NEXE Innovations Inc. ("NEXE", the "Company", "we", "us" or "our") (TSXV: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a leader in innovative compostable materials solutions, is pleased to announce that it has closed on the sale of its original facility in Surrey, B.C for a total purchase price of $5.7 million. The facility was purchased in June 2016 for $1.37 million, and NEXE spent an additional ~$1.0 million on tenant improvements for a total initial investment of approximately $2.4 million. At the time of the sale, the Surrey Facility was debt-free. NEXE has a solid cash position of over $10 million as of Q3 2024 and the additional proceeds of $5.7 million will be invested in operations, sales, and marketing.
Nexe Innovations Inc. Logo #compostablecoffeepods #bpi #coffee; BPI certified single-serve coffee pod capsules (CNW Group/Nexe Innovations Inc.)
The Surrey facility was primarily used for R&D and developing the first versions of our compostable coffee pods. However, we realized that in addition to introducing compostable products that we believe perform as well as plastic, we needed to be competitive on price. To achieve this goal, we vertically integrated our operations and built a facility with advanced manufacturing technology in Windsor, Ontario. This facility allows us to not only continue with our R&D efforts but also build scale quickly and compete with plastic products on pricing.
"We believe our move to reshore all of our operations and bring each step of the manufacturing process in-house gives us a competitive edge, ensuring we can offer superior products at a competitive price," stated Ash Guglani, President and Co-founder of NEXE.
NEXE's fully integrated manufacturing facility in Windsor, Ontario, is strategically located near the Canada-U.S. border. This prime location is within a 500-mile radius of a market of over ~100 million people. With a production capacity of ~500 million pods, we believe we are poised to significantly impact the North American market. This setup allows us to maintain control over quality, protect our IP and trade secrets, and shorten the R&D cycle for new products.
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 [email protected] Office +1-604-359-4725 Mobile +1-604-359-4742
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 use of the cash proceeds from the sale of the Surrey Facility, the Company's expectations of the impact of its vertically integrated facility, and 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 those risks set out in the Company's management's discussion and analysis for year ended May 31, 2023 and quarter ended February 29, 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.
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.
