WINDSOR, ON, Jan. 8, 2025 /PRNewswire/ - 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
[email protected]
Office +1-604-359-4725
Mobile +1-604-359-4742
For media relations contact: [email protected]
*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.
SOURCE Nexe Innovations Inc.
