VANCOUVER, BC, May 1, 2023
/CNW/ - NEXE Innovations Inc. ("NEXE" or the "Company") (TSXV:
NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative
materials company, is pleased to announce its financial results for
the three-month period ended February 28,
2023 ("Q3 2023").
During the quarter, the Company was focused on setting up its
operations at its 54,000 square foot facility in Windsor, Ontario (the "Windsor Facility").
Subsequent to the end of Q3 2023, the Company announced the Windsor
Facility had been fully commissioned to produce food-grade
components for its proprietary single-serve beverage pods and the
final handoff from the vendors and contractors of its end-to-end
systems is now complete. The Company is currently in the process of
completing and transferring various certifications from its
Surrey, British Columbia facility
to the Windsor Facility, including Organic, Kosher, and Fair
Trade.
The end-to-end manufacturing facility is a key part of NEXE's
operating strategy, which is expected to lead to higher margins,
protect our intellectual property, reduce supply chain risks, and
provide the ability to scale and expand into additional markets
faster. The Windsor Facility is equipped for compounding resin,
injection molding key components of NEXE's proprietary single-use
fully compostable pod, and dosing and sealing the pods for
commercialization. NEXE also expects to provide roasting and
grinding capabilities in order to provide a fully integrated coffee
solution to potential clients.
Key Highlights
- Given the significant advancements made with the vertically
integrated manufacturing process, NEXE decided not to continue
running a parallel production of its current composite pod and
started the transition to the new injection molded pod in
Windsor ahead of its original
second half of 2023 schedule. As a result of this transition, NEXE
started to reduce its current composite pods inventories to prepare
for the switchover. This resulted in lower revenues in Q3 2023
compared to the previous two quarters.
- NEXE is in the process of acquiring the BPI certification. The
BPI certification is a third-party verification of ASTM D6400 and
D6868 standards for compostable products. Being awarded the BPI
certification means the product has gone through a rigorous testing
process that confirms the Company has met the ASTM compostable
standards. As part of the process, NEXE submitted the new version
of the injection molded pods to an independent third-party
(approved by BPI) to conduct testing. The independent third-party
has issued a final report confirming the NEXE pod and associated
components comply with international standards required for
certification as compostable materials, including standards AS 4736
(Australia), ASTM D6400
(equivalent to European EN 13432), International standard ISO
17088, and ISO 18606. The results will be submitted by the
third-party testing agency directly to BPI for validation and
certification. Although the BPI certification is prominent in
North America, it is not required
to produce or sell our products.
- For the calendar year 2023, a key strategic focus is on growing
the Company's customer base, focusing on private label and
co-manufacturing segments of the market. To date, samples for
testing the NEXE single-use coffee pod have been sent to over 50+
potential clients across various channels, including medium sized
artisanal/local brands, and large CPG companies. Multiple companies
have indicated strong interest after testing and have entered into
final sales discussions with NEXE, including conducting on-site due
diligence.
"We are engaged in very productive conversations with
potential clients," stated Ash Guglani, President, NEXE
Innovations, "as clients test and visit the Windsor Facility to
conduct due diligence, they are impressed at what we have been able
to accomplish to date. This is an exciting time for NEXE."
Financial Position
- The Company continues to be very disciplined with deploying
capital and keeping expenses at a minimum. The Company is also in
the process of consolidating certain operations to Windsor. At the end of Q3 2023, the Company
had a working capital of $24.9
million with cash and GICs of $18.1
million that will help weather increased volatility in
the financial markets and with executing NEXE's strategy.
NEXE expects there to be a rapid increase in demand for
compostable alternatives. Recently it was announced that the EU
commission is planning to make single-serve coffee pods mandatorily
compostable as part of the Packaging and Packaging Waste Regulation
(PPWR). NEXE's expected capacity and end-to-end manufacturing
capabilities will strengthen NEXE's position in a large and growing
market. The global single-use pod market currently stands at 60+
billion pods per year and is estimated to grow between 7-8% per
year.
The Company's Q3 2023 financial statements and related
management's discussion and analysis are available on NEXE's SEDAR
profile at www.sedar.com and the Company's website at
www.nexeinnovations.com.
*NEXE Innovations Inc. is not affiliated with,
endorsed, or sponsored by Keurig®. Keurig® is a registered
trademark of Keurig Dr Pepper Inc.
**NEXE Innovations Inc. is not affiliated with, endorsed, or
sponsored by Nespresso®. Nespresso® is a registered trademark of
Société des Produits Nestlé S.A
About NEXE Innovations Inc.
NEXE Innovations Inc. is a leader in innovative compostable
materials technology based in British
Columbia, Canada. The first product developed by NEXE
Innovations is one of the only patented, fully-compostable,
single-serve coffee pods for use in existing major single-serve
coffee machines.
For more information about NEXE's compostable materials and how
it is well-positioned to meet the growing demand for
environmentally friendly and sustainable products, visit
www.nexeinnovations.com and follow us on social media
@nexeinnovations.
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
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 completing and transferring
various certifications, expectations regarding the benefits of
end-to-end manufacturing, acquisitions of BPI certifications,
growth of the Company's customer base, indications of interest from
potential clients, Company's use of working capital, consolidation
of operations and the Company's overall business strategy 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 and those risks set out
in the Company's management's discussion and analysis for the three
months ended February 28, 2023 under
the heading "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.
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SOURCE Nexe Innovations Inc.