- 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.
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
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'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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nexe-innovations-announces-the-sale-of-its-surrey-facility-for-5-7-million-302211012.html
SOURCE Nexe Innovations Inc.