NEXE Innovations sells its Surrey facility for $5.7 million
August 01 - 2024
Coffee Geography Magazine
NEXE Innovations Inc. a company that is fully engaged in innovative compostable materials solutions 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 company is focused on providing innovative compostable material solutions and packaging to the B2B segment to help businesses achieve their sustainability goals. It has developed a proprietary and patented compostable material that can withstand heat, pressure, and water.
The Surrey facility was primarily used for R&D and developing the first versions of the compostable coffee pods.
"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.
Ash Guglani PRESIDENT and Co-founder of NEXE
NEXE's fully integrated manufacturing facility in Windsor, Ontario, is 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, the company is engaged in the North American market.
The flagship product, the NEXE Pod, a BPI-certified compostable coffee pod, showcases the 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.