Mr. Ash Guglani reports

NEXE INNOVATIONS PROVIDES UPDATE ON PARTNER TRANSITION TO BPI-CERTIFIED COMPOSTABLE PODS

Nexe Innovations Inc. has provided an update on the progress of its partner's planned transition to Nexe's BPI-certified compostable coffee pod platform, first announced on March 25, 2026. Since that announcement, the company and its commercial partner have advanced the transition across multiple business lines, with approximately 300,000 pods delivered as of early May, 2026, two additional brands giving initial purchase orders, and a growing pipeline of OCS, retail and e-commerce opportunities, which management believes support the potential scalability and commercial adoption of the Nexe platform.

The North American distributor reports that it has had a positive experience with Nexe's BPI-certified compostable coffee pod, compostable technology platform and operations. With 1.5 million pods shipped to date, the partner's confidence in Nexe's ability to scale is reflected in current ordering activity: Repeat order volumes are trending higher, brand transitions are accelerating and end-market feedback is positive. The distributor has placed additional purchase orders with Nexe, which Nexe expects to deliver in the next couple months. The partner anticipates commencing larger-volume transitions ahead of the fall and winter season.

The partner has advised Nexe that it also recently secured a nationwide partnership with a nationally recognized U.S. veterans non-profit, which it has reported will be transitioning to Nexe's BPI-certified compostable pods across its offices and events. Management believes this partnership supports further validation of Nexe's sustainability credentials and product performance. In management's experience, accounts of this profile require consistent product performance and certified environmental credentials, and their adoption of the compostable pod platform is expected to open the door to similar opportunities across other non-profit, government and corporate channels.

In parallel, the partner tells Nexe that it is investing in e-commerce and marketing initiatives designed to increase consumer awareness of its brands and support the transition to BPI-certified compostable pods. As part of this effort, the partner has launched a targeted Amazon promotion, with a $5-off offer planned for Amazon Prime Day (June 23 to June 26) seeking to encourage trial and increase consumer engagement, improve product rankings, and capture peak consumer traffic. Participating products span the Hurricane Coffee & Tea and Yummy Coffee brand lines.

Management is also in the process of transitioning two more brands -- one from a Canadian-based coffee brand and the second from a United States-based coffee company and cafe. The expected volumes from these two brands are approximately 1.5 million pods annually and are part of the previous guidance provided of 10 million to 15 million annual pod volume run rate.

About Nexe Innovations Inc.

Nexe Innovations is focused on providing innovative compostable material solutions and packaging to the business-to-business 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. Its flagship product, the Nexe pod, a BPI-certified compostable coffee pod, showcases its 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.

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