A Vancouver company specializing in low-carbon construction material is building up its own access to capital.
Nexii Building Solutions Inc. revealed Tuesday (January 26) the close of a funding round that raked in just under $33 million.
The latest round, which closed in fall 2020, brings the company’s total funding to $66 million while its valuation now sits at $620 million.
In addition to the new capital, Nexii is bolstering its boardroom with the addition of Uber Technologies Inc. (NYSE: UBER) chairman and Apple Inc. (Nasdaq: AAPL) director Ronald Sugar, who had previously joined the advisory board last year.
He’ll be joined by Bill McNabb, the former CEO and chairman of The Vanguard Group Inc., who will serve as Nexii’s vice-chairman.
“Nexii’s approach to tackling the climate crisis and reinvigorating economies with green technology is exactly where we need to be right now,” McNabb said in a statement.
“Facing a global pandemic, devastating hurricanes, fires and floods, amidst a housing crisis with tens of thousands of buildings needing critical retrofitting, we need innovative companies like Nexii to pave the way forward.”
The company, which was founded in Moose Jaw before relocating its head office to the West Coast, is known for developing a building material known as Nexiite that can be used as an alternative to cement and concrete for floors, walls and roofs.
Starbucks Corp. (Nasdaq: SBUX) and A&W Restaurants Inc. are among the companies that have been tapping Nexiite for the construction of their own buildings.
Cement has a large carbon footprint due to its energy intensity.
About 900 kilograms of CO2 is produced for every tonne of Portland cement, according to a 2018 study published in Science Direct.
Materials that have similar properties as cement, but lower carbon intensities, are being pursued as a way to decarbonize the construction sector.
Development of a Nexii production facility is underway in Squamish and the company plans to use the new capital to hasten its opening.
In addition to a plant in operation in Moose Jaw, the development of facilities is also underway in Alberta, Ontario and Pennsylvania.
Following inquiries from BIV, Nexii revealed funding was raised through a private placement with Fort Capital Partners acting as lead agent.
The offering included participation from Lotus Capital Corp., newly appointed vice-chairman McNabb and Ryan Holmes, the chairman and former CEO of Hootsuite Inc.
—With a file from Nelson Bennett