VANCOUVER, B.C., May 19, 2021 – NEXE Innovations Inc. (“NEXE” or the “Company”) (TSXV: NEXE, OTC Markets: NEXNF, Frankfurt: NX5), is pleased to announce that its has installed its proprietary equipment for the assembly of its fully-compostable Nespresso-compatible pods (the “Assembly Line”) and the Assembly Line has passed its Site Acceptance Test (“SAT”) at NEXE’s facility. This innovative Assembly Line is the final piece of highly customized equipment required to launch NEXE’s fully compostable Nespresso-compatible pod in early Q3 2021. SATs are used to validate the functionality of equipment on-site following its installation. 

With our proprietary assembly line successfully installed, this will enable us to commercialize our Nespresso-compatible, compostable pods on schedule,” said Ash Guglani, President of NEXE. “We launched a fully compostable pod compatible with Keurig single-serve brewing systems earlier in 2021 with our in-house brand, XOMA Superfoods, and plan to expand our product offerings in Q3 with a Nespresso-compatible pod.” 

NEXE now has custom automation equipment for the production of the two leading single-serve formats, being Keurig-compatible and Nespresso-compatible pods, and will continue to purchase additional equipment to increase production as required to fulfill growing sales. 

SATs require that the equipment successfully complete production while following all process parameters and requirements. The manufacturer also sends its representatives to witness and verify the test. The Nespresso-compatible automation demonstrates that NEXE’s plant-based materials can be assembled at production speed proving the scalability of the technology. This Assembly Line will form the basis for additional production-scale equipment which will increase production capacity to an estimated 50 million NEXE Nespresso-compatible pods.

More than 56 billion single-serve capsules are discarded to the landfill every year, equivalent to over 400 pods per second. Virtually all of these end up in landfill, with consumption of single-serve pods continuing to grow at an estimated 8.5% per year. With the launch of NEXE’s Nespresso-compatible pod, the Company aims to provide a sustainable alternative to consumers while delivering a great cup of coffee.

This new product is the culmination of NEXE’s two-year partnership with Innovative Solutions Canada, which awarded the Company $1M to support its development (previously announced January 14, 2021). The Company is pleased to have executed on all project milestones on time and in full. 

Developing a compostable Nespresso-style pod required innovation in materials design, composting performance, and high-speed automation. We’re extremely excited to see this all come together with this upcoming product launch,” said Zachary Hudson, Chief Scientific Officer at NEXE.

About XOMA Superfoods

XOMA Operations Inc. is a wholly owned 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 pods.

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, over 40 billion are discarded every year. With over $64M 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.

“Darren Footz”

Darren Footz, Chairman and CEO
For additional information, please contact:
Ash Guglani, President and Director
Kelsey Letham, Investor Relations at 604-359-4731
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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, increase production capacity, demand and/or sales of its products, 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.