VANCOUVER, BC, Jan. 27, 2022 /CNW/ - NEXE Innovations
Inc. ("NEXE" or the "Company"),
(TSXV: NEXE) (OTC Markets: NEXNF) (Frankfurt: NX5),
a leader in plant-based materials manufacturing, is pleased to
announce that it has completed the acquisition of a 54,000 square
foot industrial facility strategically located in Windsor, Ontario (the "New Facility").
With the acquisition of the New Facility, the Company is able to
significantly expand its production capacity of its
proprietary NEXE compostable packaging that not only
includes coffee capsules but other form factors. In addition, the
Company gains access to a workforce located in Windsor, Ontario, that is highly-skilled with
deep experience with injection molding and other manufacturing
skills required to support the Company's commercialization and
growth plans.
"Acquiring a facility in Windsor enables NEXE to more easily access the
talent needed to drive the Company's production and product
innovation initiatives," said Ash Guglani, President of NEXE.
"Windsor is known for its
expertise in manufacturing, automation and Injection
Molding.. The Windsor region
has more than 90 automobile and automobile parts manufacturers,
including two OEMs – Fiat Chrysler Automobiles and Ford Motor
Company of Canada, plus over 250
machine, tool, die and mold manufacturers, and more than 450
automation related firms. Windsor-Essex
is also home to more than 1,000 manufacturers, responsible for
$4.5 billion in annual GDP making up
30 percent of the region's total GDP, the largest sector by revenue
in Windsor-Essex. Built on manufacturing but driven by
innovation, Windsor-Essex boasts the largest cluster of both tool,
mold and automation companies in North
America."
"Windsor-Essex is home to the busiest commercial border
crossing accounting for more than one-third of all Canada-U.S.
trade. Having this facility in Windsor enables us to acquire the talent that
we need for continued innovation , increases production
capabilities and shortens our access to Europe and the US Eastern seaboard. We believe
this initiative will enable NEXE to become a worldwide leader in
sustainable consumer packaged goods alternatives to
plastic."
Following discussions and customary due diligence, the Company
entered into an agreement of purchase and sale as of December 22, 2021 (as amended, the "Purchase
Agreement") with KSV Restructuring Inc., in its capacity as
court-appointed receiver of JD Norman Canada, ULC, and as part of
the court-supervised receivership proceedings resulting in the
wind-down of the business and operations of JD Norman Canada, ULC.
The Purchase Agreement and completion of the transaction were
approved by the Ontario Superior Court of Justice (Commercial List)
pursuant to an Approval and Vesting Order issued on January 21, 2022. The Company acquired the New
Facility for $4.35 million, a
significant discount to its original listing price of $6.5 million in April
2021.
In seeking to expand its production capacity, the Company had
initially sought to lease an industrial property in or around
Windsor, Ontario. As a result of
very competitive market conditions for industrial space in
Ontario due to low supply and high
demand, the Company was unable to secure a suitable premises on
acceptable lease terms despite engaging with several landlords.
After considering various alternatives, the Company decided to
explore an acquisition with the intention of potentially completing
a sale-leaseback transaction in the future. With the completion of
the acquisition of the New Facility, the Company intends to
evaluate potential sale-leaseback opportunities to further monetize
the New Facility once certain required repairs and improvements to
the New Facility are completed.
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, >50 billion of which are discarded every
year. With over $60M 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. Learn
more: https://nexeinnovations.com/
Social Media
https://twitter.com/nexeinnovations
https://www.facebook.com/nexeinnovations
https://www.linkedin.com/company/nexeinnovations
https://www.instagram.com/nexeinnovations
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 expansion of the Company's production
capacity, the Company seeking potential lease back opportunities,
completion of upgrades to the New Facility, expectations for when
production will begin at the New Facility, increased access to a
skilled workforce, growth in our distribution channels, creation of
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, dependence on key personnel, shortage of qualified
personnel and supply chain disruptions. 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, failure to complete upgrades required to the New
Facility, difficulty in hiring skilled employees, 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nexe-announces-acquisition-of-windsor-property-301469721.html
SOURCE Nexe Innovations Inc.