NEXE Innovations Surpasses 1 Million Pods Milestone with New Canadian Orders, Progress Being Made on Potential U.S. Expansion Strategy

Rhea-AI Summary

NEXE Innovations (OTC: NEXNF) has achieved a significant milestone of producing over 1 million compostable coffee pods since November 2024. The company secured two new Canadian purchase orders: one from Bridgehead for two SKUs, and another from a North American office coffee services company for over 150,000 pods across 6 SKUs.

Due to U.S. tariff uncertainties, NEXE is primarily focusing on the Canadian market while developing plans to establish U.S. operations. The company is considering relocating some production lines for coffee operations to the U.S., while maintaining pod component manufacturing at its Windsor facility. This strategy aims to mitigate tariff risks and potentially improve gross margins.

NEXE is also exploring new verticals and collaborating with existing customers on next-generation compostable Nespresso OriginalLine pods, capitalizing on growing interest in BPI-certified compostable coffee pods and the "Buy Canada" movement.

Positive

• Achieved production milestone of 1 million pods since November 2024
• Secured new order for 150,000 pods from existing North American client
• Planned U.S. expansion strategy could improve gross margins
• Growing customer base in Canadian market

Negative

• U.S. tariffs negatively impacting U.S. customer base
• Current operations primarily to Canadian market due to tariff constraints

WINDSOR, Ontario , April 22, 2025 (GLOBE NEWSWIRE) -- NEXE Innovations Inc. ("NEXE", the "Company", “we” or “our”) (TSX.V: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative materials company, is pleased to announce it 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. 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 (NEXE Innovations Secures Fourth Partnership, Expanding its Audience in Canada and the United States) and this repeat order consists of over 150,000 pods across 6 SKUs.

With the addition of these two purchase orders, NEXE Innovations has produced over 1 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 U.S. We are in the process of onboarding additional Canadian based customers as we believe the interest in our NEXE BPI-certified compostable coffee pods continues to increase, especially given the movement towards “Buy Canada”.

NEXE is working towards 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 our 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. We anticipate that this strategy will also have a positive impact on gross margins and allow us 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 ongoing collaboration with existing customers on our 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 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
invest@nexeinnovations.com
Office +1-604-359-4725
Mobile +1-604-359-4742

For media relations contact: media@nexeinnovations.com

*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.

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 purchase order from Bridgehead and the second purchase order from OCS, expectations with respect to customer demand, the Company’s strategic considerations to address the tariffs and geopolitical risks, changes to the Company’s US strategy and anticipated benefits of such operational changes, increases in production and revenue, and the Company's long-term growth and development plans. 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.

FAQ

How many compostable coffee pods has NEXE Innovations (NEXNF) produced since November 2024?

NEXE Innovations has produced over 1 million compostable coffee pods since November 2024.

What is NEXE Innovations' (NEXNF) strategy for U.S. market expansion?

NEXE plans to relocate some production lines for coffee operations to the U.S. while maintaining pod component manufacturing in Windsor, aiming to mitigate tariff risks and improve margins.

What recent purchase orders has NEXE Innovations (NEXNF) secured in Canada?

NEXE secured orders from Bridgehead for two SKUs and from a North American office coffee services company for over 150,000 pods across 6 SKUs.

How are U.S. tariffs affecting NEXE Innovations' (NEXNF) business strategy?

Due to tariff uncertainties, NEXE is currently focusing on the Canadian market while developing plans for U.S. operations to mitigate tariff and geopolitical risks.