Mr. Ash Guglani reports

NEXE INNOVATIONS ANNOUNCES THE SALE OF ITS SURREY FACILITY FOR $5.7 MILLION

Nexe Innovations Inc. has closed on the sale of its original facility in Surrey, B.C., for a total purchase price of $5.7-million. The facility was purchased in June, 2016, for $1.37-million, and Nexe spent an additional approximately $1.0-million on tenant improvements for a total initial investment of approximately $2.4-million. At the time of the sale, the Surrey facility was debt free. Nexe has a solid cash position of over $10-million as of the third quarter (Q3) of 2024 and the additional proceeds of $5.7-million will be invested in operations, sales and marketing.

The Surrey facility was primarily used for research and development (R&D) and developing the first versions of the company's compostable coffee pods. However, Nexe realized that in addition to introducing compostable products that it believes perform as well as plastic, the company needed to be competitive on price. To achieve this goal, Nexe vertically integrated its operations and built a facility with advanced manufacturing technology in Windsor, Ont. This facility allows Nexe to not only continue with its R&D efforts but also build scale quickly and compete with plastic products on pricing.

"We believe our move to reshore all of our operations and bring each step of the manufacturing process in-house gives us a competitive edge, ensuring we can offer superior products at a competitive price," stated Ash Guglani, president and co-founder of Nexe.

Nexe's fully integrated manufacturing facility in Windsor, Ont., is strategically located near the Canada-United States border. This prime location is within a 500-mile radius of a market of over approximately 100 million people. With a production capacity of approximately 500 million pods, Nexe believes its is poised to significantly impact the North American market. This set-up allows the company to maintain control over quality, protect its intellectual property (IP) and trade secrets, and shorten the R&D cycle for new products.

About Nexe Innovations Inc.

Nexe Innovations is focused on providing innovative compostable material solutions and packaging to the business-to-business (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. Its flagship product, the Nexe pod, a BPI-certified compostable coffee pod, showcases durability of the company's material 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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