VANCOUVER – Nexii Building Solutions Inc., Nexii Construction Inc, NBS IP Inc., and Nexii Holdings Inc. (collectively, the “Company” or “Nexii”), a designer and manufacturer of high performance and sustainable building products, announced today that it obtained an Initial Order on January 11, 2024 (the “Initial Order”) under the Companies’ Creditors Arrangement Act (the “CCAA” and the Company’s proceedings thereunder, the “CCAA Proceedings”) from the Supreme Court of British Columbia (the “Court”) in Vancouver.
The Initial Order provides for, among other things, a stay of proceedings in favour of Nexii, the approval of debtor-in-possession financing (“DIP Financing”) and the appointment of KSV Restructuring Inc. as monitor of Nexii (in such capacity, the “Monitor”). The Initial Order also extends the stay of proceedings to entities related to Nexii that are not petitioners in the CCAA Proceedings.
The stay of proceedings and DIP Financing will provide Nexii with the time and stability required to consider potential restructuring transactions and maximize the value of its assets for the benefit of its stakeholders. This may include the sale of all or substantially all of the business or assets of Nexii through a Court-supervised sales process. In that regard, Nexii intends to seek Court approval to launch a sale process for its business and assets (the “Sale Process “) on or around January 22, 2024. The Sale Process is expected to be administered by Nexii’s financial advisor, Origin Merchant Partners (“Origin”), under the oversight of the Monitor. Any and all parties interested in participating in the proposed Sale Process are requested to contact Origin for further details (contact information below).
Nexii also intends to seek recognition of the CCAA Proceedings in the United States pursuant to Chapter 15 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware.
Nexii’s products and services are a high-tech solution tailored for developers seeking substantial reductions in their buildings’ carbon footprint. The building and construction industry currently accounts for 37% of all global emissions and traditional concrete is a leading contributor. Leveraging their green building technology, streamlined manufacturing processes, and virtually waste-free on-site assembly, Nexii has pioneered a transformative construction approach that offers a sustainable answer to the escalating challenges of urbanization and climate change. Nexii’s building products have an average of 33% less embodied carbon than conventional concrete construction and up to 40% higher insulating R-value, resulting in 33-50% less building energy use.
Over $250 million has been raised by the Company to date to develop its business. This significant capital investment has yielded a competitive product line complemented by an extensive intellectual property portfolio featuring environmentally sustainable building materials with proven efficacy.
The difficult but necessary decision to commence the CCAA Proceedings was made following careful evaluation of available alternatives and in consultation with legal and financial advisors. Despite its proven and tested proprietary product technology, its implementation of a series of operational improvements, and improved project margins, the Company still faces certain financial challenges. This step allows Nexii to continue delivering on its projects, rolling out its 2.0 product line while actively exploring strategic alternatives to optimize value for stakeholders.
“Nexii remains committed to delivering its innovative and revolutionary sustainable products and services to the market” said Bill Tucker, CEO at Nexii. “This decision marks a pivotal moment for the Company as we work diligently with all stakeholders to secure a strong and sustainable future.”
SOURCE: Nexii Building Solutions Inc. & AccessWire
