VANCOUVER, BC, Jan. 27, 2022 /PRNewswire/ - NEXE Innovations Inc. ("NEXE" or the "Company"), (TSXV: NEXE) (OTC Markets: NEXNF) (Frankfurt: NX5), a leader in plant-based materials manufacturing, is pleased to announce that it has completed the acquisition of a 54,000 square foot industrial facility strategically located in Windsor, Ontario (the "New Facility"). With the acquisition of the New Facility, the Company is able to significantly expand its production capacity of its proprietary NEXE compostable packaging that not only includes coffee capsules but other form factors. In addition, the Company gains access to a workforce located in Windsor, Ontario, that is highly-skilled with deep experience with injection molding and other manufacturing skills required to support the Company's commercialization and growth plans.
"Acquiring a facility in Windsor enables NEXE to more easily access the talent needed to drive the Company's production and product innovation initiatives," said Ash Guglani, President of NEXE. "Windsor is known for its expertise in manufacturing, automation and Injection Molding.. The Windsor region has more than 90 automobile and automobile parts manufacturers, including two OEMs – Fiat Chrysler Automobiles and Ford Motor Company of Canada, plus over 250 machine, tool, die and mold manufacturers, and more than 450 automation related firms. Windsor-Essex is also home to more than 1,000 manufacturers, responsible for $4.5 billion in annual GDP making up 30 percent of the region's total GDP, the largest sector by revenue in Windsor-Essex. Built on manufacturing but driven by innovation, Windsor-Essex boasts the largest cluster of both tool, mold and automation companies in North America."
"Windsor-Essex is home to the busiest commercial border crossing accounting for more than one-third of all Canada-U.S. trade. Having this facility in Windsor enables us to acquire the talent that we need for continued innovation , increases production capabilities and shortens our access to Europe and the US Eastern seaboard. We believe this initiative will enable NEXE to become a worldwide leader in sustainable consumer packaged goods alternatives to plastic."
Following discussions and customary due diligence, the Company entered into an agreement of purchase and sale as of December 22, 2021 (as amended, the "Purchase Agreement") with KSV Restructuring Inc., in its capacity as court-appointed receiver of JD Norman Canada, ULC, and as part of the court-supervised receivership proceedings resulting in the wind-down of the business and operations of JD Norman Canada, ULC. The Purchase Agreement and completion of the transaction were approved by the Ontario Superior Court of Justice (Commercial List) pursuant to an Approval and Vesting Order issued on January 21, 2022. The Company acquired the New Facility for $4.35 million, a significant discount to its original listing price of $6.5 million in April 2021.
In seeking to expand its production capacity, the Company had initially sought to lease an industrial property in or around Windsor, Ontario. As a result of very competitive market conditions for industrial space in Ontario due to low supply and high demand, the Company was unable to secure a suitable premises on acceptable lease terms despite engaging with several landlords. After considering various alternatives, the Company decided to explore an acquisition with the intention of potentially completing a sale-leaseback transaction in the future. With the completion of the acquisition of the New Facility, the Company intends to evaluate potential sale-leaseback opportunities to further monetize the New Facility once certain required repairs and improvements to the New Facility are completed.
About NEXE Innovations Inc.
NEXE Innovations Inc. is a leader in plant-based compostable technology and advanced materials manufacturing based in British Columbia, Canada. The company has developed one of the only patented, fully compostable, plant-based, single-serve coffee pods for use in leading single-serve coffee machines. The proprietary NEXE pod is designed to reduce the significant environmental impact caused by single-serve pods, >50 billion of which are discarded every year. With over $60M raised to date from equity and government funding and over five years of R&D, NEXE is well-positioned to meet the growing demand for environmentally friendly and sustainable products in the single-serve coffee sector and beyond. Learn more:https://nexeinnovations.com/
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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 the expansion of the Company's production capacity, the Company seeking potential lease back opportunities, completion of upgrades to the New Facility, expectations for when production will begin at the New Facility, increased access to a skilled workforce, growth in our distribution channels, creation of other environmentally friendly compostable packaging opportunities, development of technologies, the potential of the Company's technology, future plans, regulatory approvals and other matters. 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, business, economic and capital market conditions, the ability to manage operating expenses, consumer demand for and sentiment towards the Company's products, security threats, dependence on key personnel, shortage of qualified personnel and supply chain disruptions. 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, failure to obtain regulatory approval, failure to complete upgrades required to the New Facility, difficulty in hiring skilled employees, the continued availability of capital and financing, equipment failures, litigation, increase in operating costs, the impact of Covid-19 or other viruses and diseases on the Company's ability to operate, competition, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, 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.
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SOURCE Nexe Innovations Inc.
