VANCOUVER, BC, Oct. 31,
2022 /CNW/ - NEXE Innovations Inc. ("NEXE" or the
"Company") (TSXV: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a
compostable and innovative materials company, is pleased to
announce its financial results for the three-month period ended
August 31, 2022 ("Q1 2023").
NEXE continues to make progress on transitioning to a vertically
integrated and injection molding manufacturing process, including
manufacturing components in-house. NEXE has a solid operational
footprint and its 54,000 square feet facility in Windsor, Ontario is on track to start
production by the end of the year. The vertically integrated
manufacturing process has many benefits from reducing supply chain
risk, providing greater quality control and reducing operational
costs. Costs are expected to further benefit as operations scale
and as material costs will be locally sourced.
A key priority for NEXE is to build a strong customer base
focusing on the private label and co-manufacturing segments of the
market. Currently, NEXE is in active discussions with several
potential clients within the co-manufacturing and private label
segments to fill its capacity as it comes online throughout 2023
and beyond. Recently, NEXE signed its first U.S. purchase
order as part of a partnership with Awaken Brands Ventures Ltd.
NEXE will be providing its fully compostable and proprietary pod
for Awaken Brands' "ecobeans coffee" and "Urban Hippie" product
lines. The partnership with Awaken Brands is expected to lead to
additional co-packing superfood offerings and partnership
arrangements for NEXE.
"We are pleased with the progress we continue to make as we
transition from R&D to production. We are engaged in several
conversations with potential clients in both Canada and the U.S.", stated Ash Guglani,
President, NEXE Innovations, "The 54,000 square feet Windsor facility is on track to be operational
by year end and we are receiving a lot of employment interest and
excitement from the local community".
Key Highlights:
- Work continues to progress on the 54,000 square foot facility
purchased by NEXE in Windsor,
Ontario and is on track 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 working 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.
- During the three months ended August 31,
2022, the Company had a net loss of $1,949,860 or $0.02
per share, compared to a net loss of $2,016,955, or $0.02 per share, for the comparable period last
year.
- As of August 31, 2022, the
Company had working capital of $28,588,131 (May 31,
2021 - $31,728,662) with cash
and cash equivalents that totaled $12,176,298 (May 31,
2021 - $15,507,163) and
investment in GICs that totaled $13,000,000 (May 31,
2021 - $12,955,307).
- NEXE is fully funded with $25.2
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 Q1 2023 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, transitioning to a vertically integrated and
injection molding manufacturing process, transitioning from R&D
to production, filing patents and obtaining various certifications
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 three months ended
August 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.