Nexii Building Solutions Inc. has assembled a $2-billion-plus valuation for itself after raising another $45 million from investors for the second time in less than in a year.
The latest raise, announced Tuesday (July 12), for the Vancouver-based construction company was led by Horizon Technology Finance Corporation (NASDAQ: HRZN) and Trinity Capital Inc. (NASDAQ: TRIN).
After emerging as one of B.C.’s “unicorns” (companies with valuations of US$1 billion or more) 10 months ago, the latest injection of capital brings its valuation to $2.05 billion.
Its previous valuation sat at $1.55 billion.
Two previous capital raises in 2021 and 2020 garnered another $45 million and $33 million, respectively, for the firm best known for developing a building material known as Nexiite.
This material can be used as a low-carbon alternative to cement and concrete for floors, walls and roofs.
At least two manufacturing plants are in operation in North America and six others are under development, as of 2021.
The company has been striking deals with quick-serve restaurants like A&W Food Services of Canada Inc. and Starbucks Corp. (Nasdaq:SBUX) to provide materials that can reduce buildings’ emissions by 30% in some cases.
Beyond small quick-service restaurants, Nexii is also embarking on construction efforts for mid-size buildings such as the new Marriott hotel in Nanaimo.
“We anticipate huge growth with that product in mid-to-high-rise buildings, which need to be more far more energy efficient,” Nexii executive vice-president Gregor Robertson told BIV after the company hit unicorn status last year, adding Nexii also sees opportunities with multi-unit residential buildings.
Meanwhile, late last month Nexii revealed it would be building two new homes in Lytton after the B.C. community was razed during last year’s wildfire season.
The funding for the rebuilds will come from Canada Mortgage and Housing Corporation under the National Housing Strategy Demonstration Initiative, with contributions also coming from B.C. Housing.
Buildings made from Nexiite are pre-fabricated and assembled on site. The two Lytton homes will be fabricated at Nexii’s plant in Squamish, with the homes expected to be assembled later this year.
To date, the company has raised at least $170 million through a mix of private placements and equity investments.
—With a file from Nelson Bennett
