VANCOUVER, BRITISH COLUMBIA – January 6, 2021 – NEXE Innovations Inc. (TSXV: NEXE) (“NEXE” or the “Company”), a leader in plant-based materials science and advanced manufacturing technologies, is pleased to highlight our achievements in 2020, and to provide a 2021 outlook.
Despite a year beset by challenges due to the COVID-19 pandemic, 2020 was a successful year for NEXE with numerous critical milestones reached. It is our intention to begin providing quarterly reports to our shareholders going forward, allowing investors to closely monitor our progress.
Completion of Go-Public Transaction & Board of Directors Formation
In 2020, we completed, by way of reverse takeover, our qualifying transaction to become a publicly listed company on the TSX Venture Exchange. This major milestone was preceded by various brokered and non-brokered financings raising gross proceeds exceeding Cdn$20M over the past 12 months, a significant increase over the original capital raise target. In total, fundraising and government grants have brought in over Cdn$35M to NEXE since its inception in 2015.
Furthermore, we have strengthened our board of directors with the addition of three new independent members. This is consistent with best corporate governance practices as the majority of the board will be independent. The new members include Haytham Hodaly (Senior Vice President, Corporate Development of Wheaton Precious Metals Corp.), Killian Ruby (President and CEO of Malaspina Consultants Inc.) and Graham Gilley (Director of Enterprise Risk Management and Data Protection at a private academic institution). The new board brings decades of experience in corporate finance, public practice accounting and risk management. In addition, and to complement our board of directors, we have added key members to the advisory board, who bring unrivalled experience in product marketing, automation and finance.
Strengthening of IP Portfolio, Equipment Update, and Interest from CPG Players
A strong IP strategy is the foundation of our business. The Company has substantially strengthened its intellectual property (“IP”) portfolio in 2020. NEXE engaged a leading IP consulting firm to focus on our proprietary automation processes and materials technology within our pods. The IP firm had identified more than 20 possible patent applications that would further bolster NEXE’s competitive advantage, raise barriers to entry, and generate potential licensing revenue. We anticipate that any potential future licensing revenue will compliment capsule sales thereby diversifying our revenue streams. It will also safeguard us as we pursue other business lines and further leverage our innovation platform.
In early 2020, NEXE placed orders for custom-built high-speed automation to scale its NEXE Keurig-compatible (“K-Cup”) pod production capacity from 20 million annually toward capacity of up to 120 million pods/year. We expect our high-speed automation for our K-Cup-compatible to arrive and be commissioned by mid-2021. In addition, we have begun to commercialize our Nespresso-compatible initiative and expect high speed automation deliveries in Q2 of 2021. With all of key equipment anticipated to arrive at site through 2021, we will be able to scale our Nespresso and K-Cup-compatible pod production to a combined 220 million pods/year capacity. As equipment arrives, we will continue to improve supply chain efficiencies and reduce supply chain risk.
Finally, in 2020, NEXE received substantial inbound interest from large consumer packaged goods (“CPG”) companies who have avoided the single-serve beverage market due to sustainability concerns and see our technology as a sustainable entry point and solution. These discussions are ongoing as we look to bring our production facility online in 2021.
In 2021, investors can expect an active year as we will primarily focus on commercialization of our plant-based capsule businesses and pursuing collaborations with leading CPG companies who have a shared ethos. We are also 100% committed to demonstrating the leverage of our innovation platform into new businesses which we believe will be a significant value driver going forward. In addition, our in-house IP team will continue to work with outside consultants to ensure that we are always expanding our IP portfolio and safeguarding every move we make. We will continue our efforts in engaging the various government entities who have been so supportive in our pursuit to tackle the elimination of single-use plastic waste.
We aim to commercialize our fully compostable capsules for use in Keurig Brewing Systems in the first half of 2021. We are also targeting the launch of our coffee capsules for use in Nespresso “original line” brewing systems by the second half of 2021. As we anticipate the arrival of our high-speed automation equipment and the start of commercialization, we are planning a major expansion of our production facility, both in terms of physical space and personnel, to satisfy the high level of demand we expect for our products. We continue to expand our personnel and believe our new hires are among the brightest minds in the space.
Finally, NEXE Innovations would like to wish a Happy New Year to all its stakeholders, team members and partners. Though last year was a challenging year for most, we are exceptionally proud of our team’s achievements in 2020 and look forward to an exciting and prosperous year ahead in 2021.
About NEXE Innovations Inc.
NEXE Innovations Inc. is an advanced materials innovator and leader in plant-based compostable technology 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 existing major single-serve coffee machines. The proprietary NEXE Pod is designed to reduce the significant environmental impact caused by single-serve pods (+40 billion plastic pods discarded every year). With over $35M raised (equity and government funding) to date 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.
For additional information, please contact:
Kelsey Letham, Investor Relations at 604-359-4731
or visit: nexeinnovations.com
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, 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, the ability to enter into purchase orders for the sale of its products, 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, filing of patent applications and grant of patents on its intellectual property, ability to generate licensing revenues from its intellectual property 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.
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.