Mr. Ash Guglani reports

NEXE INNOVATIONS SURPASSES 1 MILLION PODS MILESTONE WITH NEW CANADIAN ORDERS, PROGRESS BEING MADE ON POTENTIAL U.S. EXPANSION STRATEGY

Nexe Innovations Inc. has received two purchase orders from existing clients for the Canadian market. The purchase order from Bridgehead, a proudly Canadian-owned business with a rich 40-year history, has been delivered and includes two different SKUs (stock-keeping units). The second order is from a North American-based coffee company specializing in office coffee services (OCS) and the retail distribution space managing distribution for several well-known brands with over 50 product SKUs. The OCS partnership was announced in February, 2025, and this repeat order consists of over 150,000 pods across six SKUs.

With the addition of these two purchase orders, Nexe Innovations has produced over one million pods since November, 2024. Given the current environment and the uncertainty around tariffs, Nexe expects to continue focusing on the Canadian market for current sales while it advances plans to establish an operational footprint in the United States. The company is in the process of onboarding additional Canadian-based customers as the company believes its interest in its Nexe BPI-certified compostable coffee pods continues to increase, especially given the movement toward "Buy Canada."

Nexe is working toward a strategy under which it may move some of its production lines for coffee operations such as dosing and sealing pods to the U.S. Nexe expects to continue to manufacture the pod components in house at its existing facility in Windsor. In the company's view, not only will this strategy reduce risks related to coffee prices and operations, but it may also mitigate tariff and geopolitical risks, as coffee is currently impacted by the existing tariffs. The company anticipates that this strategy will also have a positive impact on gross margins and allow the company to focus on developing additional innovative products and entry into new verticals. Nexe is currently advancing a strategy to enter new verticals and is continuously evaluating new opportunities, including continuing collaboration with existing customers on the company's next-generation compostable Nespresso OriginalLine pods.

"We are excited about the continued traction we are gaining with customers and reaching the milestone of producing over 1 million pods, even as we navigate the current situation with the U.S. tariffs which have had an impact on our U.S. customers in the short-term," stated Ash Guglani, president of Nexe. "Currently, we are focusing most of our efforts on growing our Canadian-based business while we advance our plans for transferring some of our production lines to the U.S. Over time we expect this will help support our U.S. customers with their strategies and contribute to the growth of our U.S. based revenues."

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. The company's flagship product, the Nexe Pod, a BPI-certified compostable coffee pod, showcases Nexe's 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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