NEXE Innovations Reports Significant Progress in Compostable Coffee Pods

WINDSOR, ON, Oct. 18, 2024 /PRNewswire/ – NEXE Innovations Inc. (“NEXE”, the “Company”, “we”, “us” or “our”) NEXE NX NEXNF, a leader in innovative compostable materials solutions, is pleased to provide shareholders with an update on our progress over the past two years.

Growing Demand for Compostable Packaging

The demand for compostable packaging is surging in the consumer-packaged goods (CPG) industry, with 80% of the 25 largest CPG companies pledging to pivot to recyclable or compostable packaging by 2030¹. NEXE aims to meet this challenge effectively as plastic use declines. Over the last 24 months, we have conducted extensive commercial testing of our NEXE pod while shifting to a new strategy focused on B2B customers. Recently, we have interacted with multiple companies and are nearing the completion of master manufacturing supply agreements for several pending orders. Although the sales process for new market entrants can be long, we anticipate concluding some of these deals soon.

Operational Advancements in Windsor Facility

Our Windsor facility, covering approximately 54,000 sq. ft., is fully operational with a production capacity of up to 500 million compatible compostable coffee pods annually for both Keurig* and Nespresso**. This strategic location enables us to access key markets in the U.S. and Canada. To ensure integrity in our supply chain and product quality, major processes have been brought in-house, including the manufacturing of our proprietary resin and components. Significant investments in infrastructure are allowing us to rapidly diversify our product offerings. An in-house tool shop has been established to collaborate with R&D and tailor solutions for B2B customers, significantly reducing product development times and minimizing machine downtime.

Industry Trends and Competitive Landscape

Recently, Keurig Dr. Pepper announced plans to beta-test compostable pods this year, aiming to let customers brew with either new compostable options or traditional plastic capsules². Nespresso is also set to pilot compostable pods in select European markets³. Such initiatives underline the increasing relevance of sustainable solutions like compostable products.

NEXE’s Research and Development Achievements

Through committed R&D efforts, NEXE has developed what we consider to be a top-tier product. We recognized early that competing on cost with traditional plastic and aluminum pods was crucial as we scaled. In two years, we’ve revamped our business model to deliver an enhanced product while managing supply chain risks and keeping competitive pricing.

Key Statements from Leadership

“We’re proud of the progress we’ve made in the compostable coffee pod industry. While Keurig and Nespresso are just beginning to explore sustainable alternatives, these developments highlight the growing importance of sustainable solutions like compostable materials,” stated Ash Guglani, President and Co-founder of NEXE. “By reshoring all operations and bringing every aspect of manufacturing in-house, we have gained a competitive advantage, allowing us to deliver a superior product at a competitive price. As the demand for eco-friendly coffee pods grows, we are confident NEXE will stand out with our innovative and cost-effective solutions—even against plastic.”

Market and Investor Awareness Initiatives

The Company has also launched initiatives to enhance market and investor awareness.

Engagement with Independent Trading Group

Independent Trading Group (ITG): The Company has hired ITG to provide market-making services for an initial term of one month, potentially extendable by mutual agreement. ITG will be compensated CAD$5,000 per month, plus applicable taxes. ITG is a CIRO dealer-member specializing in market-making and related services, operating independently from the Company.

Collaboration with Clarkham Capital

Clarkham Capital: The Company has engaged Clarkham Capital from London, United Kingdom, for investor relations and consulting services focused on its German Investor Engagement campaign. This includes creating articles for different financial platforms and, if chosen, translating news releases into German. The agreement has a minimum duration of three months, with compensation set at EUR 350,000, plus applicable taxes. No performance factors are part of this agreement, and Clarkham Capital will not receive Company securities as compensation. Operating in London, Clarkham Capital is led by Sebastian Korbach, remaining independent from the Company.