VANCOUVER, BC, March 15, 2021 /CNW/ - NEXE Innovations
Inc. ("NEXE" or the "Company") (TSXV: NEXE), a leader
in plant-based materials manufacturing, is pleased to announce its
strategy to enhance vertical integration in its supply chain, in
order to increase product margins, protect intellectual property
(IP) and mitigate supply chain risk.
Using proven technologies developed by the Company in
collaboration with leading experts in plant-based materials, the
Company will now bring key manufacturing processes to commercial
scale in-house.
"The COVID-19 pandemic has highlighted supply chain
vulnerabilities around the globe, and by increasing vertical
integration in our production, we can reduce or eliminate many
uncertainties in production as NEXE scales up. NEXE also
anticipates accelerated revenue growth, improved IP protection and
higher operating margins as a result of these initiatives," said
NEXE CEO, Darren Footz. "Over
the last 5 years, we have built our IP by investing in every step
of the production process, and now we are bringing this same
forward thinking to more aspects of our supply chain. Over the last
six months we have begun acquiring sophisticated machinery to mold
our proprietary capsules and produce our plant-based materials
in-house."
NEXE has received substantial commercial interest for its
single-serve beverage pods and anticipates that this interest will
continue to grow, making manufacturing capacity and reliability of
paramount importance. In addition to its current and planned
high-speed assembly lines, the Company has begun upgrading its
facility for the production of bio-based materials and bio-based
parts.
The production of NEXE's compostable single-serve pod can be
broken down into three key processes:
- Producing plant-based resin from readily renewable
materials
- Converting this resin into parts that are used for capsule
assembly
- Mechanical assembly of those parts into a finished capsule that
can be filled with coffee and/or other ingredients
As numbered above, process 3 is currently handled in-house by
NEXE, while 1 and 2 were previously handled by external partners.
As of now, NEXE has commissioned equipment and personnel for all
steps in this process for its facility.
The goals of this strategy are to:
- Increase operating margins: By reducing reliance on
external suppliers, NEXE anticipates being able to achieve higher
gross margins on every beverage pod sold.
- Strengthen IP portfolio: NEXE's proprietary product
designs and biopolymer formulations will remain in-house as the
Company expands its extensive patent portfolio.
- Reduce supply chain risk: Vertical integration reduces
the risk of supply chain disruptions at any one stage of
manufacturing. Reduced shipping costs during the production process
will also further improve margins.
- Accelerate research and development: The ability to test
biopolymer formulations, manufacture them into parts, and rapidly
evaluate their performance in-house in functional products will
greatly accelerate product development cycles.
"By upgrading plant operations to produce plant-based resins and
parts in-house using proven technology, NEXE will have greater
control over product development from conception to manufacturing.
NEXE's upgraded facility will be fully devoted to the production of
its compostable single-serve beverage pods including our upcoming
XOMA Superfoods line, reducing the time needed to rapidly scale the
technology," said Ash Guglani, President of NEXE. "This in-house
expertise will also provide us with additional opportunities to
leverage licensing opportunities with best-in-breed manufacturers
in other verticals to further monetize our IP in plant-based
materials."
The first example of interest in NEXE IP by third-party
manufacturers was regarding the development of a compostable
single-use mask (announced February 16,
2021). Further opportunities to licence NEXE's technology
will be assessed as they arise, while the Company remains focused
on execution in the single-serve beverage pod market.
About NEXE Innovations Inc.
NEXE Innovations Inc. (TSXV:NEXE) is a leader in
plant-based compostable technology and advanced materials
manufacturing based in British Columbia,
Canada. The company has developed one of the only patented,
fully compostable, plant-based, single-serve coffee pods for use in
leading single-serve coffee machines. The proprietary NEXE pod is
designed to reduce the significant environmental impact caused by
single-serve pods, >40 billion of which are discarded
every year. With over $35M raised to
date from equity and government funding and over five years of
R&D, NEXE is well-positioned to meet the growing demand for
environmentally friendly and sustainable products in the
single-serve coffee sector and beyond.
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.
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Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking
statements or information, which include the proposed use of
proceeds, commercialization of the NEXE PODs, including the NEXE
Nespresso Compatible Pod, development of the NEXE Mask, and
increase production capacity, create other environmentally friendly
compostable packaging opportunities, development of technologies,
the potential of the Company's technology, future plans, regulatory
approvals and other matters. 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, business, economic and capital market
conditions, the ability to manage operating expenses, consumer
demand for and sentiment towards the Company's products, security
threats, and dependence on key personnel. 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, failure to obtain regulatory
approval, the continued availability of capital and financing,
equipment failures, litigation, increase in operating costs, the
impact of Covid-19 or other viruses and diseases on the Company's
ability to operate, competition, failure of counterparties to
perform their contractual obligations, government regulations, loss
of key employees and consultants, 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.