VANCOUVER, BC, Oct. 1, 2021 /CNW/ - NEXE Innovations Inc.
(TSXV: NEXE) ("NEXE" or the "Company"), a leader in plant-based
materials manufacturing, is pleased to provide shareholders with an
update of operational highlights since its go-public transaction on
December 18, 2020, including the
close of a C$34.5M bought-deal
financing.
Highlights:
Financial
- Raised in excess of C$50M of
capital since initial public offering
- Received support and validation from the federal and provincial
governments in the form of grants and awards including C$1M from Innovative Solutions Canada and
C$300k from Innovate BC
- Received eligibility for trading with the U.S. Depository Trust
Company (DTC)
Sales and Product
- Commercialized NEXE's proprietary, fully compostable pods via
the Company's in-house XOMA Superfoods product lineup and online
store with multiple SKUs for use with Keurig® brewing systems
- Commercialized NEXE's proprietary, fully-compostable pods for
use with Nespresso® OriginalLine machines
- Investment in compounding and injection molding allows NEXE to
rapidly develop new packaging concepts
- Initiated a plan to expand online sales channels
- Since Dec 18, 2020, NEXE has
filed 6 Utility Patent Applications in both the US and PCT (Patent
Cooperation Treaty) and 16 additional Provisional Patent
Applications.
Operational
- Took delivery of key equipment for the commercialization of
fully compostable pods for both the Keurig® style and Nespresso®
style pods
- Developed initial infrastructure for full in-house vertical
integration and a "Made in North
America" manufacturing strategy
- Doubled footprint in Surrey to
20,000 square feet
- Added several key team members with strong consumer packaged
goods (CPG) backgrounds.
Product Update:
- XOMA Superfoods: Xoma launched in April of this year and
now offers four popular SKUs. The product is sold in NEXE's
compostable pods, compatible with Keurig® Brewing Systems
single-serve machines. The launch was met with positive media
feedback. There are additional SKUs planned to launch this quarter
to expand the superfoods line
- NEXE Coffee: NEXE's espresso pods for Nespresso®
OriginalLine machines launched in July and have put the Company in
a strong position to gain greater market share in the single-serve
beverage space.
"Our promotion and brand awareness strategy will be similar to
what other large single-serve conglomerates have successfully done
to drive sales," said Ash Guglani President of NEXE. "We are
leading with our own proprietary brands, and are currently in
discussions to strategically offer capacity to select well-known
coffee roasters in North America.
We are in a strong position to serve this market with our ability
to provide compostable pods that can be used in both Keurig®
Brewing Systems as well as Nespresso® OriginalLine machines, the
two most popular single-serve machines in the
world."
Marketing and Distribution Update:
The Company is focused on complementing its success with its
online store and growing its direct-to-consumer sales through
popular eCommerce platforms. The Company also has plans to offer
its NEXE Coffee through Grocery retail/e-retail across North America.
NEXE is heavily focused on building a strong marketing
foundation prior to launching NEXE Coffee in Keurig®-style pods in
the U.S. and Canada.
"We are in discussions with top-tier marketing firms and
aligning this with our in-house expertise to develop an integrated
digital media strategy to drive new product trials, brand awareness
and brand loyalty," added Ash Guglani. "A key component of this
messaging will be educating consumers on the environmental
realities of single-serve coffee pods, and the benefit of how a
product like NEXE can solve these issues."
The strategy will also leverage brand partnerships,
user-generated content, trade and consumer shows and other proven
strategies to drive retail success.
"The success of our marketing programs will be supported by
strong pricing models, team cohesion and deep-rooted relationships
with all partners at all levels of the business. This will be
crucial to enable the success of NEXE as we truly rise to challenge
the status quo," added Guglani.
The distribution strategy consists of a two-phased launch into
natural/specialty retail, as well as conventional retail and
e-retail channels.
Manufacturing and Operational Update:
The Company has allocated the necessary capital to bring its
equipment needs in-house with the objective of providing it with
full control over the design, manufacture, timelines, and
operational functions of NEXE's growing pod product lineup. These
moves will accelerate ongoing R&D initiatives and reduce
operational costs such as shipping, while eliminating bottlenecks
related to delivery time.
"We are working toward receiving the first of two customized and
automated filter forming, dosing, and sealing lines for the Keurig®
capsules. Nexe Coffee will launch its new coffee in the Nexe Pod
that enables the highest grammage and extraction in the space. Not
only are our capsules fully compostable but the proprietary filter
assembly will showcase our ground-breaking innovation. This line
will open up opportunities to significantly scale our business not
just with our own proprietary brands but to launch new brand
partnerships," added CEO Darren
Footz.
Each scaled manufacturing line will be designed to add a
capacity of approximately 50 million pods per year. NEXE is in
active discussions with some of its partners to order multiple
production lines for both the Keurig and Nespresso® OriginalLine
formats. Further updates will be provided on this as key pieces of
equipment are tested and commissioned at site.
Despite global supply chain disruptions affecting a multitude of
industries, NEXE is confident that our partners can deliver on time
and on budget to secure long-lead items required for these
machines. Bringing manufacturing in-house is a key strategic move
that will help NEXE avoid challenges associated with global supply
chain disruptions.
Intellectual Property Update:
This vertical integration strategy is designed to protect NEXE's
expanding IP portfolio. Since December 18,
2020 the Company has filed 6 Utility Patent Applications in
both the US and PCT (Patent Cooperation Treaty) and 16 additional
Provisional Patent Applications. As NEXE expands the number of
products under development beyond single-serve pods, the Company
will also look to commercialize these additional products with
best-of-breed partners that have the expertise, distribution and
sales channels to quickly enter each market. In this situation,
NEXE will establish ongoing licensing and royalty revenue streams
to monetize its IP.
Team Update:
The Company has added multiple key team members with robust
Consumer Packaged Goods (CPG) experience to drive future growth for
the Company. NEXE intends to continue to grow its marketing and
sales teams as manufacturing capacity increases over the next
quarter. The team is pleased to welcome:
- Mark Holman, VP
Operations: Mr. Mark Holman has
more than 35 years of experience in Senior Engineering and
Operations roles in the CPG industry. His extensive knowledge and
work experience at companies such as Coca-Cola Canada Ltd., SC
Johnson & Son, and Nestle USA
provides the necessary leadership attributes for growing capacity
at NEXE.
- Scott Naccarato, Director of
Retail Sales: Scott is a CPG expert who has been in the
industry for over 12 years. In his former roles at Nutiva, Scott
assisted in pioneering the Organic MCT Oil category and played a
major role in category growth of Organic Coconut Oil and other
healthy fats, plant-based proteins and nutraceuticals. He has
cultivated many valuable relationships, held senior executive roles
at rapidly growing companies and his data-oriented approach to
revenue generation has led to sustained double digit year-over-year
growth for all brands he has been a part of.
- Joe Canning, Plant
Manager: Joe Canning has spent
more than 18 years in senior management roles for a variety of
manufacturing and service organizations. Joe specializes in the
development and management of operational systems for improved
company performance. He began his career in the Canadian Armed
Forces where he graduated from the CAF School of Communications and
Electronics Engineering with a specialization in telecommunications
and cryptography, and served for 10 years in a variety of
operations.
"We are capitalized to execute on our compostable coffee pod
sales, to expand our manufacturing capacity, to attract the best
talent to the Company, and to take advantage of strategic
partnerships and M&A opportunities as they arise. We are now
positioned to become a global leader in developing disruptive
sustainable innovations to replace plastic waste," added Guglani.
These funds will allow NEXE to accelerate its plans for growth as
well as provide confidence in the company's financial position,
regardless of market conditions or global events.
Investor Relations Update:
The Company announces that it has engaged 1239649 B.C. Ltd. (Kelsey
Letham), Proactive Investors North America Inc.
("Proactive") and John Martin to
provide investor relations services for the Company.
Kelsey Letham has worked in the
financial services and wealth management industry for over fifteen
years, starting as an investment advisor, and advancing to be VP
Regional Sales of a global investment firm. Pursuant to a corporate
communications agreement, Ms. Letham will provide corporate and
shareholder communication services for the Company. The agreement
is month to month, terminable on one month's notice, at a cost of
C$7,500 plus GST per month. Ms.
Letham operates through 1239649 B.C.
Ltd., a private company incorporated under the laws of British Columbia. Neither Ms. Letham nor
1239649 B.C. Ltd. own any securities,
directly or indirectly, of the Company.
Proactive is a leading multimedia news organization, investor
portal and events management company based in Vancouver, B.C. Proactive operates financial
websites in multiple languages providing breaking news and
commentary on hundreds of listed companies in addition to
organizing investor forums in major financial centers. Pursuant to
an investor relations agreement entered into with Proactive in late
2020, Proactive received a cash fee of C$40,000 for 12 months of digital media services,
including editorial coverage, interviews articles and social media
content, with the objective being to enhance the Company's
visibility within the global investment community. Neither
Proactive nor its control persons own any securities, directly or
indirectly, of the Company.
John Martin has worked in the
public markets for over 25 years. He was previously President of
Fibera AG, an Investor/Public Relations company, and more recently
Manager of Investor Relations for Patriot One Technologies. Mr.
Martin is based in Vancouver, B.C.
Pursuant to an agreement, Mr. Martin will provide investor
relations and shareholder communication services to the Company.
The agreement is month to month, terminable on one month's notice,
at a cost of C$7,500 plus GST per
month. Mr. Martin does not own any securities, directly or
indirectly, of the Company.
The engagement of Ms. Letham, Proactive and John Martin is subject to the approval of the
TSX Venture Exchange.
About XOMA Superfoods
XOMA Operations Inc. is a
subsidiary of NEXE Innovations Inc. XOMA Superfoods produces and
distributes high-quality coffee and superfood creamers packaged
exclusively in single-serve, fully compostable, plant-based Keurig®
compatible pods.
Order XOMA in Canada:
xoma.ca
Order XOMA in the U.S.: xomasuperfoods.com
xoma.ca
instagram.com/xomasuperfoods/
About NEXE Coffee
NEXE Coffee is a subsidiary
of NEXE Innovations, a world leader in sustainable,
plant-based material manufacturing based in Surrey, B.C., Canada. NEXE Coffee produces and distributes
high-quality coffee packaged in single-serve, full compostable,
plant-based Nespresso® OriginalLine compatible pods.
Order in Canada and the U.S.:
www.nexecoffee.com
nexecoffee.com
Instagram.com/nexe.coffee/
About NEXE Innovations Inc.
NEXE Innovations Inc. 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 C$60M 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.
Social Media
https://twitter.com/nexeinnovations
https://www.facebook.com/nexeinnovations
https://www.linkedin.com/company/nexeinnovations
https://www.instagram.com/nexeinnovations
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, increase production capacity, demand and/or sales
of its products, 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, single use
beverage pods, and compostable products, security threats, and
dependence on key personnel. Such statements and information are
based on reasonable assumptions and currently available information
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 importance or 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.