NEXE Innovations Issues Letter to Shareholders

WINDSOR, ON, Jan. 23, 2025 /CNW/ - NEXE Innovations Inc. ("NEXE", the "Company", "we", "us" or "our") (TSXV: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative materials company, today announced that its President, Ash Guglani, issued the following letter to the Company's shareholders.

Dear Shareholders,

As we step into 2025, we at NEXE Innovations are energized by the milestones we achieved in 2024 and what we believe are the transformative opportunities ahead. This year marks a pivotal moment in our journey as we continue to innovate, grow, and redefine what is possible within sustainable solutions.

In calendar Q4 2024, after an intensive product development cycle and multiple rounds of beta testing, our K-Cup compatible NEXE pod successfully entered commercialization. I believe this achievement demonstrates the dedication of our team and the strength of our vision. I am proud to report that our partnerships to date are driving recurring revenue, with increasing order volumes reflecting what I believe is strong market demand for our products. Our diverse customer base spans multiple channels, including retail, office coffee services (OCS), and e-commerce, which in our view will enable us to reach distinct audiences and broaden our market penetration. Simultaneously, we are onboarding additional customers for our K-Cup-compatible products, ensuring a pipeline for continued growth. We also remain focused on advancing our next-generation compostable Nespresso** OriginalLine pods, with sampling efforts underway for two customers, and we anticipate rolling out these pods later this year.

The development of our coffee pod was not without challenges. K-Cup compatible coffee pods face unique obstacles during the brewing process, including exposure to heat, high pressure, and water flow. Achieving a consistent and satisfying coffee extraction in a K-Cup compatible machine requires precise engineering to balance these variables. These challenges can impact coffee quality, brewing efficiency, and even machine performance. Addressing these complexities demanded significant R&D efforts to create a capsule capable of meeting these rigorous demands while ensuring a premium coffee experience. However, addressing these challenges led to an incredible breakthrough for us in our proprietary resin. I believe this material now forms the foundation of our competitive edge and has positioned NEXE as an innovator, not only in the coffee industry but across sectors where sustainable alternatives to plastics are increasingly sought. 

Since our inception in 2015, our goal has been clear: to eliminate single-use plastics in the coffee industry. Over time, this vision has expanded significantly. Plastics dominate vast markets, presenting challenges that are costly and complex to address. Through extensive R&D, we've developed solutions which I believe has the potential to impact industries beyond the coffee sector. By leveraging our proprietary resin, supported by our growing intellectual property portfolio, management is of the opinion that NEXE will be in a position to address challenges across multiple sectors.

Unlike traditional plastics, our materials, including PLA (polylactic acid), do not persist in the environment. Instead, they are designed to break down into smaller, soluble molecules, eventually biodegrading entirely. This non-persistence supports environmental recovery over time. Moreover, because PLA is derived from plant-based sources that absorb CO2 and water, its composting and degradation processes complete a circular lifecycle, making it an ideal solution for a sustainable future.

In my view, one of the most exciting developments at NEXE is the establishment of our in-house tool shop. This capability has significantly reduced the time required to develop prototypes, allowing us to accelerate innovation and meet customer demands more efficiently than ever before. By bringing all aspects of production in-house, we have enhanced our ability to innovate and maintain cost competitiveness with traditional plastics—a critical factor for scaling our solutions.

Additionally, we are currently in conversations with industry leaders who focus on sectors we believe may offer greater market potential and broader growth opportunities where our proprietary resin can serve as a renewable source for waste-to-energy processors. To support these efforts, we are currently building prototypes that showcase our capabilities to key decision-makers in specific industries, demonstrating what we believe to be the versatility and potential of our resin. These opportunities align with our commitment to sustainability and represent a significant step forward in reducing the dependence on plastic.

I believe these advancements have the potential to open new revenue stream opportunities and unlock entry points into industries we had not previously considered. Additionally, we have made the necessary capital investments to scale our proprietary resin across various form factors, extending its applications beyond coffee pods into what I believe to be new and promising markets. With a clear vision and strong partnerships, we expect to expand our impact and deliver long-term value to our shareholders.

Sincerely,

"Ash Guglani"

Ash Guglani
President, NEXE Innovations

*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.

About NEXE Innovations Inc.
NEXE Innovations is focused on providing innovative compostable material solutions and packaging to the 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. Our flagship product, the NEXE Pod, a BPI-certified compostable coffee pod, showcases our 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. Discover our innovative approach to sustainability at www.NEXEinnovations.com and join our journey on social media @NEXEInnovations. #compostablecoffeepods #sustainability #greentech

On behalf of the Company:
Ash Guglani
President & Director

For investor relations contact:
Kam Mangat
VP, Investor Relations & Corporate Strategy
[email protected]
Office [phone]
Mobile [phone]

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.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking statements or information, which include, but are not limited to, statements in respect of potential new revenue streams, the anticipated rollout of new products, performance and market potential of our proprietary resin, its anticipated impact on sustainability, and its broader application across industries, and our ability to deliver long-term shareholder value. 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 year ended May 31, 2024 under the headings "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.