“Mushroom coffee has become increasingly popular in recent years for its health benefits, and we are excited to add this great-tasting coffee to our product line…Our customers are not only health-conscious, but also environmentally-conscious. XOMA pods deliver great taste, health benefits, convenience, and sustainability,” said Marc Bains, President of XOMA.
For context, XOMA is NEXE’s in-house coffee and superfoods brand. XOMA recently launched its e-commerce store on April 6, 2021, offering its XOMA Coffee Fortified with MCT. According to the NEXE, demand for XOMA Coffee has been substantial, however, whether the Company’s Mindful Mushroom brand can find similar success has yet to be determined.
According to Research and Markets, the global edible mushrooms market is expected to reach US $62 billion by 2023. Similarly, the Global Superfoods Market is expected to reach US $209.1 billion by 2026. In particular, the edible mushroom market is expected to grow at a compound annual growth rate (CAGR) of 7.95% increasing from US $42.4 billion in 2018.
Our premium coffees, including our new mushroom coffee, are packaged exclusively in our single serve, fully compostable, plant-based NEXE pods, which are compatible with the popular, Keurig single-serve coffee brewing systems…We created these pods to be completely compostable in their entirety, providing the ultimate in convenience and sustainability,” added Bains.
Keep in mind, just because the edible mushrooms market is expected to grow at a respectable rate does not mean every company in the mushroom market will be living in the lap of luxury. Like every other psychedelic or edible mushroom company, NEXE’s stock performance skyrocketed following the explosion of the mushroom market in the new year. However, the Company’s stock performance has since declined steadily, recently dropping below $2.00 on April 7, 2021.
On April 9, 2021, NEXE closed a bought deal which generated aggregate gross proceeds of C $34.5 million for the Company. Following the closing, NEXE now has approximately $52 million in cash to play with. NEXE plans to use its latest funds to dedicate substantial resources to becoming a leader in the global superfoods market. Although, NEXE’s recent performance hasn’t inspired much confidence in investors, the Company’s enthusiasm hasn’t dwindled. However, enthusiasm alone isn’t going to be enough to turn NEXE into a leading superfoods brand. What NEXE does with its $52 million will determine just how capable the Company is of achieving its goal.
NEXE’s share price opened at $1.75 and has since dropped to $1.64. Overall, the latest news has had no positive impact on the Company’s performance.