Momentum has ground to a halt for a Vancouver-based designer and manufacturer of sustainable building products.
Climate Smart company Nexii Building Solutions, which has recently been collaborating on projects, apparently has a lot of debt that it is struggling to pay off.
Despite targeting a huge market—the building and construction industry accounts for 37% of global emissions—the B.C. firm announced this month that it has obtained an initial order under the Companies’ Creditors Arrangement Act from the Supreme Court of British Columbia, which provides a stay of proceedings in favour of Nexii.
In addition, a restructuring company has been appointed to monitor Nexii, a statement revealed.
Nexii claims its building products have an average of 33% less embodied carbon than conventional concrete construction and up to 40% higher insulating R-value, resulting in up to 50% less building energy use.
“Nexii remains committed to delivering its innovative and revolutionary sustainable products and services to the market,” Bill Tucker, CEO at Nexii, stated recently.
For this innovation, the Unicorn secured $250 million in capital over time, documents show, and an “extensive intellectual property portfolio featuring environmentally sustainable building materials with proven efficacy” has been established.
Knowing this value, Nexii intends to seek Court approval to launch a sale process for its business and assets by the end of the month.
“This decision marks a pivotal moment for the Company as we work diligently with all stakeholders to secure a strong and sustainable future,” Tucker stated.
In 2022, an early investor in Nexii filed a lawsuit against the company.
Sale of the business? There is no viable business, it will just be some assets to sell. Unfortunately those few assets will only cover a fraction of the outstanding debt.