Mr. Ash Guglani reports

NEXE INNOVATIONS RECEIVES ADDITIONAL PURCHASE ORDER FROM U.S.-BASED EKOCUPS

Nexe Innovations Inc. has received another purchase order from Ekocups to replenish previously ordered SKUs (stock-keeping units). Ekocups is a well-established company based in the United States, and sells its coffee products on-line and through Amazon.

In the company's view, this latest purchase order highlights the rising demand for sustainable coffee solutions in the U.S. market. The Nexe BPI (Biodegradable Products Institute) certified compostable pods are a game changer for the coffee industry, as they allow for the convenience of a single-serve option while being eco-friendly.

Developing the compostable coffee pod was challenging, given the performance required during the brewing process, and ensuring the company could compete with plastic on performance and price. However, addressing these challenges led to a proprietary resin that the company believes can be a suitable replacement for various plastic products across different industries.

Nexe developed a pod structure for the compostable coffee pod that is designed to accommodate higher volumes and still provide a high-quality brewing experience. Nexe accomplished this feat through its innovative technology that increases the filter area (U.S. Patent No. 12,004,678 issued on June 11, 2024), allowing for more volume per pod and increased coffee extraction, improving taste and richness. Internal tests show that the Nexe pod's total dissolved solids (TDS) are up to 20 per cent greater than other leading coffee pod brands. The company believes that, given these key competitive features, it is well positioned to offer a compelling "pour-over" coffee experience that appeals to premium coffee brands seeking a sustainable solution.

"Ekocups is an important partnership as we establish our foothold in the U.S. market. We expect volumes to continue to grow with Ekocups and expect to onboard more SKUs. In our view, our ability to provide a product that is designed to compete on price and performance will help us build a strong market position," said Ash Guglani, president of Nexe.

About Nexe Innovations Inc.

Nexe Innovations is focused on providing innovative compostable material solutions and packaging to the B2B (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. Nexe's flagship product, the Nexe pod, a BPI-certified compostable coffee pod, showcases the 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.