NEXE Innovations Announces Year Ended May 31, 2022, Audited Financial Results
VANCOUVER, BC, Sept. 28, 2022 /CNW/ - NEXE Innovations Inc. ("NEXE" or the "Company") (TSXV: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable materials company is pleased to announce its financial results for the twelve-month period ended May 31, 2022 ("FY2022").
FY2022 was an important year for NEXE, as the Company focused on building a solid operational footprint, a key part of its ongoing strategy. After commercializing its compostable pod technology, NEXE Innovations focused on vertically integrating its operations, including transitioning to an injection molding manufacturing process and manufacturing components in-house. With the operational footprint in place, NEXE is focused on growing its customer base and targeting the private-label and co-manufacturing segments of the coffee and superfoods market.
"Despite the challenges of building a new operation during COVID and the pivot to moving to a vertically integrated and injection molding manufacturing process to lower supply chain risks and have greater control over quality, initially impacted our progress, we have subsequently made significant strides over the last few months", stated Ash Guglani, NEXE's President, "We are receiving numerous in-bound inquiries from businesses that are interested in our compostable materials and our sales pipeline is active."
- After achieving scientific and commercial validation of the NEXE pod, NEXE has demonstrated key competitive features of the pod in two different retail formats and the NEXE Coffee brand is available online at nexecoffee.com, ecscoffee.com and on Amazon Prime.
- NEXE hired a seasoned salesperson from the consumer-packaged goods (CPG) coffee space. The new VP of Sales and Marketing, Chris Murray will be focused on building a talented team to meet the needs of the private label/co-manufacturing market and growing revenues. The private label/co-manufacturing segment of the market is an important and primary focus of NEXE's strategy going forward. Management believes the re-focus in sales strategy is a more prudent allocation of NEXE's capital to target larger volume commercial contracts with established distribution channels versus building a new retail coffee brand requiring large marketing spend and more resources. NEXE expects a greater return on investment targeting the private label and co-manufacturing market and a more reliable way to fill its capacity as it comes online over the next few months.
- The 54,000 square foot facility purchased by NEXE in Windsor, Ontario, a key industrial hub is expected to be operational by year end. The capacity provided at the new Windsor facility is expected to be key to securing large commercial contracts and to work with private label and co-manufacturing CPG companies.
- The Company is in the process of obtaining various certifications, including the BPI certification. The certifications are not required to produce or sell NEXE's products. NEXE expects to be granted certifications throughout the remainder of 2022 and early 2023.
- NEXE continues to file patents on its compostable materials, processes as well as its equipment. NEXE has a robust and comprehensive IP portfolio that it believes contributes to the overall value of the company.
- A large portion of NEXE's investments in capital are complete and NEXE benefitted during the year on the weaker Euro as most of the equipment purchased was based in Euro.
- As of May 31, 2022, NEXE had working capital of $31,728,662 (May 31, 2021 - $49,501,770) with cash and cash equivalents that totaled $15,507,163 (May 31, 2021 - $50,526,731) and investment in GICs that totaled $12,955,307 (May 31, 2021 - $0).
- NEXE Innovations is fully funded with $28.5 million in cash and GICs to weather the increased market volatility and focus on executing its strategy over the next 12-18 months.
The Company's FY2022 audited financial statements and related management's discussion and analysis are available on NEXE's SEDAR profile at www.sedar.com and the Company's website at www.nexeinnovations.com.
*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.
**NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Nespresso®. Nespresso® is a registered trademark of Société des Produits Nestlé S.A
NEXE Innovations Inc. is a leader in innovative compostable materials technology based in British Columbia, Canada. The first product developed by NEXE Innovations is one of the only patented, fully-compostable, single-serve coffee pods for use in existing major single-serve coffee machines.
For more information about NEXE Innovations' compostable materials and how it is well-positioned to meet the growing demand for environmentally friendly and sustainable products, visit www.nexeinnovations.com and follow us on social media @nexeinnovations.
On behalf of the Company:
Ash Guglani
President & Director
For investor relations contact:
Kam Mangat
VP, Investor Relations & Corporate Strategy
[email protected]
Office +1-604-359-4725
Mobile +1-604-359-4742
For media relations contact: [email protected]
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this release are forward-looking statements or information, which include, but are not limited to, statements in respect of the Company growing its customer base and targeting the private-label and co-manufacturing segments of the coffee and superfoods market; and the Company's overall business strategy. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, the Company's ability to execute on its business strategy and those risks set out in the Company's management's discussion and analysis for the year ended May 31, 2022 under the heading "Risk and Uncertainties".. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, receipt of necessary approvals and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Nexe Innovations Inc.
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