Windsor, Ont.- April 29, 2024 – NEXE Innovations Inc. (“NEXE”, the “Company”, “we”, “us” or “our”) (TSX.V: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a leader in innovative compostable materials solutions, announces its financial results for the three-month period ended February 29, 2024 (“Q3 2024”). NEXE has a strong focus on creating sustainable alternatives to reduce plastic pollution and is delivering significant progress through its flagship product – the NEXE Pod, a BPI-certified compostable coffee pod. 

In Q3 2024, NEXE continued to work with potential business-to-business (B2B) customers. NEXE is engaged in several discussions with coffee companies of various sizes. These companies have tested various samples, conducted their due diligence, and engaged in discussions with their end customers, including grocery chains and online distributors, to help forecast demand and contractual details.

During the quarter, NEXE’s founders also attended B2B conferences, including a large private-label conference in Jacksonville, Florida (ECRM) and the Specialty Coffee Expo in Chicago, Illinois. Our management believes that the target market received the NEXE Pod well, which has led to several leads and discussions.  

We believe our position within the market is not just strong; it’s strategic and forward-thinking. With a tested, BPI-certified compostable product and a fully integrated production facility where we craft our own resin, we are setting a new standard in sustainable production,” stated Ash Guglani, President and Co-founder of NEXE, “As a start-up that is bringing a disruptive product to the market, there was a more involved education and validation process as part of the sales cycle with our initial customer conversations. We expect these timelines to improve as we refine our approach. However, due to the caliber of the partners we engage with, the process will naturally remain thorough, and a typical sales cycle will take months”.

Highlights:

We believe we are leaders in the compostable coffee pod space. Both Keurig and Nespresso are investing in developing sustainable alternatives for their coffee pods. Keurig still needs to beta test its product and will require consumers to purchase a new machine. Nespresso has a more paper-based product, which they have piloted in Switzerland and France, and differs greatly from the NEXE Pod. NEXE is one of the few hard-bottomed, fully enclosed pods certified compostable by a third party – the BPI Institute. We believe it is positive for the coffee market and consumers that the largest players are also starting to invest in alternatives to plastic and aluminum. Given the size of the market, there is an opportunity for many players to compete. We believe NEXE will be a strong competitor in this market, given its vertically integrated operations and strategy, and that the NEXE Pod will be price competitive compared to the traditional plastic/aluminum offerings. The new non-plastic version that is expected to be introduced by Keurig is likely to be priced at a premium.

In our view, NEXE is well ahead of the competition with its fully operational, vertically integrated facility in Windsor, Ontario. We are excited about the conversations we are engaged in and have been working with some well-established U.S. companies to develop product offerings using our NEXE Pod technology. We believe the fundamentals for the business remain strong and have a strong financial position to execute the business plan, particularly:

Fiscal Q3 2024 Results:

During the three months ended February 29, 2024, the Company had a net loss of $1,136,209 or $0.012 per share, compared to a net loss of $1,252,477 or $0.013 per share, for the comparable period last year. The change in net loss was predominantly a result of the following:

NEXE has a working capital of $14.5 million, commitments of $1.7 million, and a strong balance sheet to help it execute its plans over the next two years. Management continues to be very disciplined in managing its financial position. 

The Company’s Q3 2024 financial statements and related management’s discussion and analysis are available on NEXE’s SEDAR+ profile at www.sedarplus.ca 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 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

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 indications of interest from potential clients, government regulations, potential receipt of government refunds, funds to be received from a potential sale of non-core assets, completion of a potential sale of non-core assets, NEXE’s potential cash position, consumer trends, Company’s use of working capital, sale of property or assets of the Company, consolidation of operations 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 but not limited to, the Company’s ability to execute on its business strategy, ability to find a buyer of non-core assets on terms that are favourable or acceptable, increases in interest rates which may have negative impacts on the real estate market or property values, potential legal, regulatory or tax changes that may impact the value of the Surrey facility, ability of NEXE to meet the conditions for a sale of the Surrey facility and 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, 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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