Mr. Ash Guglani reports

NEXE INNOVATIONS ANNOUNCES PLANNED PARTNER TRANSITION TO COMPOSTABLE PODS

Nexe Innovations Inc. has been notified that a commercial partner has initiated steps toward a transition of significant portion of its single-serve coffee pod volumes from plastic to Nexe's BPI-certified compostable platform. The transition, expected to occur in phases over the coming months, is anticipated to increase annual partner volumes to approximately 10 million to 15 million compostable coffee pods, representing a meaningful step toward revenue scale and improved facility utilization for Nexe.

The partner's decision follows an extensive validation process in which over 10,000 cases were tested across multiple distribution channels. The partner reported strong consumer feedback and expressed high confidence in both the performance and sustainability credentials of Nexe's compostable pod. Management believes that the decision to transition reflects the partner's determination that Nexe's platform is operationally ready to support their volumes at scale.

This development builds on Nexe's commercial momentum. Annual pod volumes have grown consistently since the company's commercial launch, from 232,000 pods in 2023 to 573,000 in 2024 and 1.8 million in 2025. The planned transition represents a significant inflection point in that trajectory, driven by growing market validation and deepening integration within partner product portfolios.

In support of this transition, Nexe has shipped an additional 350,000 BPI-certified compostable coffee pods across eight SKUs -- including two newly launched products -- fulfilled for ecoBeans coffee, Bridgehead and a North American office coffee services (OCS) distributor, reflecting continued repeat demand across retail, hospitality and OCS channels.

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.

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