VANCOUVER, BC, Sept. 28,
2022 /CNW/ - NEXE Innovations Inc. ("NEXE" or the
"Company") (TSXV: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a
compostable materials company is pleased to announce its financial
results for the twelve-month period ended May 31, 2022 ("FY2022").
FY2022 was an important year for NEXE, as the Company focused on
building a solid operational footprint, a key part of its ongoing
strategy. After commercializing its compostable pod technology,
NEXE Innovations focused on vertically integrating its operations,
including transitioning to an injection molding manufacturing
process and manufacturing components in-house. With the operational
footprint in place, NEXE is focused on growing its customer base
and targeting the private-label and co-manufacturing segments of
the coffee and superfoods market.
"Despite the challenges of building a new operation during COVID
and the pivot to moving to a vertically integrated and injection
molding manufacturing process to lower supply chain risks and have
greater control over quality, initially impacted our progress, we
have subsequently made significant strides over the last few
months", stated Ash Guglani, NEXE's President, "We are receiving
numerous in-bound inquiries from businesses that are interested in
our compostable materials and our sales pipeline is active."
Key Highlights:
- After achieving scientific and commercial validation of the
NEXE pod, NEXE has demonstrated key competitive features of the pod
in two different retail formats and the NEXE Coffee brand is
available online at nexecoffee.com, ecscoffee.com and on Amazon
Prime.
- NEXE hired a seasoned salesperson from the consumer-packaged
goods (CPG) coffee space. The new VP of Sales and Marketing,
Chris Murray will be focused on
building a talented team to meet the needs of the private
label/co-manufacturing market and growing revenues. The private
label/co-manufacturing segment of the market is an important and
primary focus of NEXE's strategy going forward. Management believes
the re-focus in sales strategy is a more prudent allocation of
NEXE's capital to target larger volume commercial contracts with
established distribution channels versus building a new retail
coffee brand requiring large marketing spend and more resources.
NEXE expects a greater return on investment targeting the private
label and co-manufacturing market and a more reliable way to fill
its capacity as it comes online over the next few months.
- The 54,000 square foot facility purchased by NEXE in
Windsor, Ontario, a key industrial
hub is expected to be operational by year end. The capacity
provided at the new Windsor
facility is expected to be key to securing large commercial
contracts and to work with private label and co-manufacturing CPG
companies.
- The Company is in the process of obtaining various
certifications, including the BPI certification. The certifications
are not required to produce or sell NEXE's products. NEXE expects
to be granted certifications throughout the remainder of 2022 and
early 2023.
- NEXE continues to file patents on its compostable materials,
processes as well as its equipment. NEXE has a robust and
comprehensive IP portfolio that it believes contributes to the
overall value of the company.
- A large portion of NEXE's investments in capital are complete
and NEXE benefitted during the year on the weaker Euro as most of
the equipment purchased was based in Euro.
- As of May 31, 2022, NEXE had
working capital of $31,728,662
(May 31, 2021 - $49,501,770) with cash and cash equivalents that
totaled $15,507,163 (May 31, 2021 - $50,526,731) and investment in GICs that totaled
$12,955,307 (May 31, 2021 - $0).
- NEXE Innovations is fully funded with $28.5 million in cash and GICs to weather the
increased market volatility and focus on executing its strategy
over the next 12-18 months.
The Company's FY2022 audited financial statements and related
management's discussion and analysis are available on NEXE's SEDAR
profile at www.sedar.com 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 Inc. is a leader in innovative compostable
materials technology based in British
Columbia, Canada. The first product developed by NEXE
Innovations is one of the only patented, fully-compostable,
single-serve coffee pods for use in existing major single-serve
coffee machines.
For more information about NEXE Innovations' compostable
materials and how it is well-positioned to meet the growing demand
for environmentally friendly and sustainable products, visit
www.nexeinnovations.com and follow us on social media
@nexeinnovations.
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 growing its customer base and
targeting the private-label and co-manufacturing segments of the
coffee and superfoods market; and the Company's overall business
strategy. 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 and those risks set out in the Company's
management's discussion and analysis for the year ended
May 31, 2022 under the heading "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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SOURCE Nexe Innovations Inc.