This machinery will increase NEXE's production capacity for its Compostable Keurig® Compatible Pods to over 50 million annually.
VANCOUVER, BC, Dec. 15, 2021 /CNW/ - 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 its Site Acceptance Test ("SAT") for its high-speed assembly, filter forming and dosing automation equipment at its site in Surrey, BC, Canada.
As discussed in our news release dated November 3rd, we successfully completed our Factory Acceptance Test ("FAT") on October 26, 2021 at our manufacturing partner's facility in Europe. This is the first of two custom machines that were ordered by NEXE in February 2020, pre-pandemic.
This high-speed automation was designed and engineered based on NEXE's proprietary specifications for the Company's Keurig®-compatible NEXE Pod. As standard automation in the space was not sufficient to assemble our compostable polymers, most of the proprietary processes were pioneered by NEXE. The Company expects to receive the second proprietary high-speed assembly, filter forming and dosing machine for Keurig® compatible pods in calendar Q1 2022, increasing NEXE's production capacity to over 100 million annual Keurig® compatible pods.
"As we come to year end, we are ecstatic to announce that we have completed a Successful site Acceptance Test on key equipment which can provide an additional 50 million annual pod production capacity" said Ash Guglani, President of NEXE. "We are now focused on commissioning this equipment in Q1 2022 and await our end of line packaging equipment to meet the market's demand for our sustainable and fully compostable pods. As we enter 2022, expect to hear more news on distribution and corporate updates as to how we will backfill capacity with revenue."
"The SAT results prove that NEXE is able to consistently produce our pods at a high rate while maintaining the performance and taste profile that our customers demand from a superior pod. This successful test demonstrates that NEXE's plant-based materials can be assembled at production speed and proves the scalability of the technology," added Guglani.
NEXE now has custom automation equipment for the production of pods that are compatible with two-leading single-serve coffee formats: Keurig® and Nespresso® OriginalLine, allowing the Company to address a sizable portion of the growing potential 60 billion per year coffee pod market. The Company plans to continue to purchase additional equipment to increase production capacity as required to fulfill growing demand.
The single-serve coffee pod and capsule market was measured at US$25.07 billion in 2020, and it is projected to register a compound annual growth rate (CAGR) of 7.07% from 2021-2026, according to a report from Mordor Intelligence.1
Learn more about NEXE Innovations online at: https://nexeinnovations.com/
Learn more about XOMA superfoods online at: https://xomasuperfoods.com/
Learn more about NEXE Coffee online at: https://nexecoffee.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.
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: http://nexeinnovations.com/
ON BEHALF OF THE BOARD OF DIRECTORS
NEXE INNOVATIONS INC.
s/ "Ash Guglani"
Ash Guglani, President
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Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking statements or information, which include expected increases in the Company's production capacity based on new acquired equipment, future delivery timelines for additional equipment purchased by the Company, the estimated size of the market for the Company's products and the potential of the Company's technology, future plans, 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 "will", "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, supply chain delays and disruptions, global health considerations, security threats, performance of equipment in accordance with the Company's specifications and dependence on key personnel. 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, the continued availability of capital and financing, equipment failures, supply chain disruptions, 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.