TSX.V: NEXE Investor Presentation January 2021 - Nexe Innovations
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Investor Presentation January 2021 TSX.V: NEXE
Disclaimer
This presentation contains forward-looking statements; including forward-looking statements The Company disclaims any responsibility to update the forward-looking statements or any
regarding expected growth in the global single serve hot beverage market and global coffee risks, uncertainties or factors that may affect the forward-looking statements to reflect
pod market value. Forward-looking statements involve known and unknown risks, events or developments, including any revised forward-looking statements that might be
uncertainties and other factors which may cause the actual results or growth to be materially published by the sources of the forward-looking information contained in the presentation
different from many future results or growth expressed or implied by the forward-looking materials. In addition, the presentation materials are not intended to express or simply any
statements. Actual results are likely to differ, and may differ materially, from those expressed forward-looking statements regarding expected or anticipated results of operations, financial
or implied by the forward- looking statements contained in the presentation materials. Such condition, performance or achievements of NEXE Innovations Inc. (“NEXE” or the
forward-looking statements are based on a number of assumptions which may prove to be “Company”) and the Company disclaims any such forward-looking statements. The results
incorrect. There may be factors that cause actual results not to be as expressed or implied by of operations, financial condition, performance, achievements or prospects of the Company
the forward-looking statements. There can be no assurance that forward-looking statements involve known and unknown risks, uncertainties and other factors, including risks relating to
will prove to be accurate, as actual results and future events could differ materially from those the ability of the Company to obtain necessary financing, the impact of debt financing
anticipated in such statements. Accordingly, you should not place undue reliance on transactions, the Canadian and global economy generally and the Canadian, North American
forward-looking statements. The forward- looking statements should not be relied upon as and Global market for the Company’s products, consumer interest in the Company’s
representing the Company’s views as to any date subsequent to the date the presentation products, competition, the regulatory environment, governmental legislative or regulatory
materials were prepared. actions or activities, potential litigation, and anticipated and unanticipated costs. The
forward-looking statements contained in the presentation are expressly qualified in their
entirety by this cautionary statement.
AT NEXE we are putting the planet first. Our mission is to eliminate petro- leum-based plastics from the planet by innovating and manufacturing 100% plant-based materials that can be re- turned to the soil after use.
A History of Commitment
Fully Compostable Pilot -> Automation
However, it was only the emergence of new
As pilot equipment was tested, considerable new
plant-based materials and forming technologies
challenges emerged. It would take a whole new
(like 3D printing) that propelled Footz to pursue a
production team and over 1.5 years to successfully
100% plant based coffee pod.
advance to commercialization.
G
Big Idea Commercialization
In 2015 when NEXE was originally Today the NEXE POD (for K-Cup) is being
conceptualized by founder and coffee commercialized with plans to rapidly scale
veteran Darren Footz, the single-serve (220M pods). NEXE is aiming to develop other
coffee pod business was already booming Plant-Based Challenges plant based innovations in other verticals using
yet consumers continued to choose the many lessons learned over five years.
convenience over the environment. After discovering that plant-based materials fall apart
under heat and pressure, the road ahead remained
challenging but the NEXE team persevered.
Global Coffee Consumption Market
$155B $15.6B
$29.2B
2026
44%
Global coffee market was US at-home coffee market 44% of the US coffee Global Coffee Pod and
valued at ~ USD $102.15bn is set to grow by 4.9% in demand comes from Capsule Market is
in 2019 and is expected to 2020 to reach $15.6bn the millennials Expected to Reach
reach revenue worth USD compared to a total of National Coffee USD $29.2bn by 2025
$155.64bn by 2026 and is 3.9% growth experienced Association in NY
Fior Markets
growing at a CAGR of between 2015-2019 March 2020
6.2% between 2020-2026
Mintel, September 2020
Zion Market Research, August 2020
Consumer Demand Driving Innovation
for Sustainable Alternatives
Advancements in Sustainable Materials Technology has created a
Generational Opportunity for Product Innovators.
Advanced Materials Manufacturing Technology
NEXE is at the forefront of the convergence of advanced materials science with
manufacturing technologies to develop sustainable consumer products
Global Plastic Crisis
LESS THAN
9% *
500+
**
YEARS
365+ 79%
RECYCLED
*
500-10,000 YEARS
FOR PLASTIC PODS
ENDS UP IN THE TO BREAK DOWN
MILLION TONS OF * ENVIRONMENT
PLASTIC PRODUCED (LAND AND OCEANS)
YOY
* https://www.nationalgeographic.com/news/2017/07/plastic-produced-recycling-waste-ocean-trash-debris-environment/
* https://www.nationalgeographic.com/news/2018/05/plastics-facts-infographics-ocean-pollution/
** https://www.wwf.org.au/news/blogs/the-lifecycle-of-plastics#gs.7wxvt5
Circular Economy
Understanding the Bigger Problem
• A global R&D initiative for alternative materials to
PLASTIC WASTE replace plastic
IN LOCAL LANDFILLS • Increased need for new industrial facilities to
IS OVERFLOWING! provide quick digestion solutions for waste
• Industrial compost facilities struggle with material acceptance
NEW MATERIALS • Compost certification agencies (BPI) are at odds with the
INNOVATION LOOKS industrial compost facilities on what is compostable
PROMISING BUT... • Many promising new materials technology to replace plastic,
however many not yet fully functional and compromise the
product (ie. taste)
Single-Serve Coffee Pods
Coffee maintains high ethical
requirements and consumers are
50%+ 8.5%+
demanding a solution.
OF ALL COFFEE COMPOUNDED
CONSUMED GROWTH PER YEAR
PROBLEM: Why hasn’t there been a
smart, non-plastic coffee pod that has
emerged as the category killer?
CHALLENGING COMPROMISED TOXICITY
ENGINEERING TASTE
Engineering new plant-based materials to New eco based single serve pods have Other pods that claim compostability
achieve the needed barrier properties for fared poorly in ‘pour-over’ tests. In other (because of certification) might fail toxicity
the K-Cup is challenging. words, taste was compromised. studies due to fossil inputs.
THE SOLUTION
The Patented Nexe Pod
1 Plant-based 2 Science-Backed 3 5 Years R&D Lessons Learned
Plant-based, fully Our ecotoxicity and After 5 Years of R&D, The lessons learned
compostable, no compostability results are NEXE mastered ‘barrier’ from the creation of the
compromise backed by scientific and without compromise and pod will propel NEXE to
industrial studies proved compostability in new innovations.
as little as 35 days.State-of-the-Art Commercial Facility Our 100% owned facility allows NEXE to begin to address the rapidly growing demand for plant-based alternatives to plastic.
Scientific & Commercial Validation
Carrots (left) and onions (right) after 3 weeks of growth in soil containing Post-shredded coffee pods. Fine/compost pod particles after
10 wt% NEXE POD compost. “composting cycle 3”.
“Soil containing NEXE POD compost had no “In optimum conditions the pods can be fully
negative influence on the growth of carrots and degraded within a 35 day process. At an average
onions over a period of six weeks, with no organic waste facility it would take approximately 70
evidence of toxicity to the plants.” days to fully degrade. We are working towards BPI
certification.”
Dr. Zachary Hudson
Terravis Ltd.
Canada Research Chair in
Sustainable Chemistry, University of British Columbia
and Chief Scientific Officer, NEXE. Private Sector Compost StudyHome Composting Study
NEXE’ Compostability test that took place at the UBC Chemical and Biological Engineering Lab in Vancouver.
Involved two 120-liter backyard-style composters were used for the compostability test.
Two layers of fibreglass insulation were wrapped around the composter. Forced aeration was provided by
an aquarium pump having a maximum capacity of 5 L/min and air flow distribution plenum.
Scanning Electron Microscope images of the NEXE Kup surface: indicating various degrees of ongoing decomposition
“The pods have demonstrated complete degradation
meeting applicable compost quality standards after 12 weeks”
Dr. Anthony Lau
Canada Research Chair in
Associate Professor, Advisor: MSc, MASC, MEng
University of British ColumbiaFunded Capacity (Annual) TOTAL
250 220M
200
150
100 170M
80
60 50M
40
20
10
0
Millions Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
KCup Nespresso TotalLeveraging IP to
Create New Innovations
1 2 3
IP FIRST PROCESS 20+ PATENT FINDINGS IN LAB
APPLICATIONS TO DATE SUGGEST
NEXE has a two-pronged This process will Firm has identified at least 20
WE CAN CREATE
approach to IP with a strengthen our competitive patent applications giving NEW PRODUCTS IN
leading IP consulting firm advantage and barriers to NEXE global utility patent
to focus on our entry, protect our brand, protection MULTIPLE
proprietary automation
and materials technology
generate potential licensing
revenue, increase VERTICALS
within our pods transaction leverage and
BIORESOURCES
shareholder valueAn Existing Platform for
New Innovations
Process
Gather Rapid
Prototyping Operational Customer Sales
Customer Testing Validation
Requirements Lab
Selection, modification, and utilization of sustainable polymersCollaborations & Partnerships
Government / Academic Partnerships
Government of Gouvernement du
Canada Canada
Awards
Government of Gouvernement du Government of Gouvernement du
Canada Canada Canada Canada
IRAP Innovation Assistance Program (IAP) WINN - Western Innovation Initiative
Wall Solutions AwardValue Creation
A Flexible Monetization Strategy
220,000,000+ 1,000,000,000+
LAB SCALE FLAGSHIP PLANT INDUSTRIAL SCALE
BUSINESS MODEL/ PLATFORM PROCESS/ SALES OF PRODUCTS
LICENSING
EARNINGS METHODOLOGY LICENSING
STRATEGIC CHOICES
STAND-ALONE
STRATEGIC PARTNERING
CHOICES
SELL TECHNOLOGYDecember 2020
Capital Table
47,387,337
65,087,488
Current Cash
Total Shares
Number of Common
Issued Shares $13.5M
Available Cash (Aug 31 2020) $3.7M
Warrants 16,795,468
Financing (Dec 2020) $14.16M
Performance Warrants 3,250,000
Stock Options 5,500,000 Total $17.86M
Fully Diluted Share Capital 90,632,956
63,276,033Leadership Team
Darren Footz Ash Guglani Steve Lockhart Dr. Zac Hudson
Chief Science Officer
CEO President, Co-Founder VP Business Development
Dr. Zac Hudson is the Canada Research Chair in
A serial entrepreneur, Darren is the past President Ash spent 12 years in capital markets with a Steve has over 20 years of experience in
Sustainable Chemistry at the University of British
of Granville Island Coffee, a company he built in 5 national investment bank in Vancouver. As an managementpositions with Choices Markets, a
Columbia. Dr. Hudson holds a B.Sc. and Ph.D in
years from a small artisan roaster to a national original founder of NEXE, he plays an integral role $100 million revenue local chain grocer. He played
chemistry from Queen's University, and has held
brand. He is the innovative mind behind the 100% in helping NEXE in all capacities across financing a key role in building the business from start-up to
research fellowships at top universities in Japan,
plant-based and fully compostable NEXE POD. (public, private and government), operations, and stability and profitability through the opening of 10
China, the US and UK. His Ph.D. thesis was
His expertise, dedication and pioneering ideas are marketing. large retail stores.
named the top chemistry Ph.D. in all of Canada,
the backbone of our organization. as well as the top Ph.D. at Queen's in any field.
Don Chisholm Raj Kang Paul Bhogal Anthony Rosenfeld
New Product CFO Automation Marketing
Development Rajwant S. Kang is the founder & president of RSK
Management Consulting Inc. a private company
Paul has over 20 years of manufacturing and
Anthony holds 20 years of experience in marketing,
strategy and business development. In 2007, pursuing
automation experience. He grew a small family
his passion for natural health and sustainability,
For over 30 years, Don Chisholm has been working at that provides management services and has over Hamilton-based machine shop into a Tier 1 & 2
he joined Vega in its infancy as Vice President
the intersection of business and design. With a 25 years of accounting and finance experience. He automotive production machining/assembly/-
of Marketing. There he built a strong 50- member
unique skillset that balances creativity with has proficient knowledge of capital markets, raising testing facility with two locations in Ontario and
team that developed a leading marketing program
innovation and strategy with operations, Don is capital, M&A and corporate regulation of publicly one in Saltillo, Mexico
overseeing consumer, trade, PR, creative and digital
passionate about working closely with entrepreneurs, listed companies.
marketing. He played a key role in building an
-
executives and marketers to transform businesses internationally recognized premium brand while
and generate results. seeing revenue grow from $3.5M in 2007 to $200M
in 2015.
-Summary Explosive Growth in the sustainable and global anti-plastic movement NEXE POD Commercialization in Q4 2020 (K-Cup format) Significant K-Cup Production Capacity Growth up to potential 170 million units annually by end of 2021 New Innovation Product Testing to be completed by mid 2021 (NEXE POD - Nespresso format) includes additional capacity of 50 million units Award Winner and Recognized Thought Leader have received multiple nationally recognized sustainability awards & have a growing IP portfolio
nexe.ca For more information please contact investors@nexe.ca Ash Guglani Kelsey Letham investors@nexe.ca kelsey.letham@nexeinnovations.com #109 - 19353 22nd Avenue Surrey, BC V3Z 3S6
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