WINDSOR,
ON, Jan. 23, 2025 /CNW/ - NEXE Innovations
Inc. ("NEXE", the "Company", "we", "us" or "our") (TSXV: NEXE)
(Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative
materials company, today announced that its President, Ash Guglani,
issued the following letter to the Company's shareholders.
Dear Shareholders,
As we step into 2025, we at NEXE Innovations are energized by
the milestones we achieved in 2024 and what we believe are the
transformative opportunities ahead. This year marks a pivotal
moment in our journey as we continue to innovate, grow, and
redefine what is possible within sustainable solutions.
In calendar Q4 2024, after an intensive product development
cycle and multiple rounds of beta testing, our K-Cup compatible
NEXE pod successfully entered commercialization. I believe this
achievement demonstrates the dedication of our team and the
strength of our vision. I am proud to report that our partnerships
to date are driving recurring revenue, with increasing order
volumes reflecting what I believe is strong market demand for our
products. Our diverse customer base spans multiple channels,
including retail, office coffee services (OCS), and e-commerce,
which in our view will enable us to reach distinct audiences and
broaden our market penetration. Simultaneously, we are onboarding
additional customers for our K-Cup-compatible products, ensuring a
pipeline for continued growth. We also remain focused on advancing
our next-generation compostable Nespresso** OriginalLine pods, with
sampling efforts underway for two customers, and we anticipate
rolling out these pods later this year.
The development of our coffee pod was not without challenges.
K-Cup compatible coffee pods face unique obstacles during the
brewing process, including exposure to heat, high pressure, and
water flow. Achieving a consistent and satisfying coffee extraction
in a K-Cup compatible machine requires precise engineering to
balance these variables. These challenges can impact coffee
quality, brewing efficiency, and even machine performance.
Addressing these complexities demanded significant R&D efforts
to create a capsule capable of meeting these rigorous demands while
ensuring a premium coffee experience. However, addressing these
challenges led to an incredible breakthrough for us in our
proprietary resin. I believe this material now forms the foundation
of our competitive edge and has positioned NEXE as an
innovator, not only in the coffee industry but across sectors where
sustainable alternatives to plastics are increasingly
sought.
Since our inception in 2015, our goal has been clear: to
eliminate single-use plastics in the coffee industry. Over time,
this vision has expanded significantly. Plastics dominate vast
markets, presenting challenges that are costly and complex to
address. Through extensive R&D, we've developed solutions which
I believe has the potential to impact industries beyond the coffee
sector. By leveraging our proprietary resin, supported by our
growing intellectual property portfolio, management is of the
opinion that NEXE will be in a position to address challenges
across multiple sectors.
Unlike traditional plastics, our materials, including PLA
(polylactic acid), do not persist in the environment. Instead, they
are designed to break down into smaller, soluble molecules,
eventually biodegrading entirely. This non-persistence supports
environmental recovery over time. Moreover, because PLA is derived
from plant-based sources that absorb CO2 and water, its composting
and degradation processes complete a circular lifecycle, making it
an ideal solution for a sustainable future.
In my view, one of the most exciting developments at NEXE is the
establishment of our in-house tool shop. This capability has
significantly reduced the time required to develop prototypes,
allowing us to accelerate innovation and meet customer demands more
efficiently than ever before. By bringing all aspects of production
in-house, we have enhanced our ability to innovate and maintain
cost competitiveness with traditional plastics—a critical factor
for scaling our solutions.
Additionally, we are currently in conversations with industry
leaders who focus on sectors we believe may offer greater market
potential and broader growth opportunities where our proprietary
resin can serve as a renewable source for waste-to-energy
processors. To support these efforts, we are currently building
prototypes that showcase our capabilities to key decision-makers in
specific industries, demonstrating what we believe to be the
versatility and potential of our resin. These opportunities align
with our commitment to sustainability and represent a significant
step forward in reducing the dependence on plastic.
I believe these advancements have the potential to open new
revenue stream opportunities and unlock entry points into
industries we had not previously considered. Additionally, we have
made the necessary capital investments to scale our proprietary
resin across various form factors, extending its applications
beyond coffee pods into what I believe to be new and promising
markets. With a clear vision and strong partnerships, we expect to
expand our impact and deliver long-term value to our
shareholders.
Sincerely,
"Ash Guglani"
Ash Guglani
President, NEXE Innovations
*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
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 potential new revenue
streams, the anticipated rollout of new products, performance and
market potential of our proprietary resin, its anticipated impact
on sustainability, and its broader application across industries,
and our ability to deliver long-term shareholder value.
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 year ended May 31, 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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SOURCE Nexe Innovations Inc.