WINDSOR, ON, Canada – NEXE Innovations Inc., a leader in innovative compostable materials solutions, is pleased to announce that it has closed on the sale of its original facility in Surrey, B.C for a total purchase price of $5.7 million.
The facility was purchased in June 2016 for $1.37 million, and NEXE spent an additional ~$1.0 million on tenant improvements for a total initial investment of approximately $2.4 million. At the time of the sale, the Surrey Facility was debt-free.
NEXE has a solid cash position of over $10 million as of Q3 2024 and the additional proceeds of $5.7 million will be invested in operations, sales, and marketing.
The Surrey facility was primarily used for R&D and developing the first versions of our compostable coffee pods. However, we realized that in addition to introducing compostable products that we believe perform as well as plastic, we needed to be competitive on price.
To achieve this goal, we vertically integrated our operations and built a facility with advanced manufacturing technology in Windsor, Ontario. This facility allows us to not only continue with our R&D efforts but also build scale quickly and compete with plastic products on pricing.
“We believe our move to reshore all of our operations and bring each step of the manufacturing process in-house gives us a competitive edge, ensuring we can offer superior products at a competitive price,” stated Ash Guglani, President and Co-founder of NEXE.
NEXE‘s fully integrated manufacturing facility in Windsor, Ontario, is strategically located near the Canada-U.S. border. This prime location is within a 500-mile radius of a market of over ~100 million people.
With a production capacity of ~500 million pods, we believe we are poised to significantly impact the North American market. This setup allows us to maintain control over quality, protect our IP and trade secrets, and shorten the R&D cycle for new products.
