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EnWave Announces Changes to its Equipment Purchase Agreement with The Green Organic Dutchman
February 14, 2020, 6:10 am
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”), announced today that it has agreed to modify its Equipment Purchase Agreement with Medican Organic Inc., a subsidiary of The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (“TGOD”), that was previously announced on March 26, 2019 (the “Purchase Agreement”). Under the terms of the original Purchase Agreement, TGOD purchased three 120kW Radiant Energy Vacuum (“REV™”) machines equipped with Optional Support Equipment and Robotic Arms for installation at its Valleyfield, Quebec facility. At the request of TGOD, due to its revised processing requirements and a phasing of the Valleyfield facility buildout, the capacity of REV™ machinery to be delivered to TGOD has been reduced to a single 120kW REVTM machine with an Optional Support Equipment and Robotic Arm system. TGOD has already taken possession of a 60kW REV™ machine for processing at its Ancaster, Ontario facility, which is slated for commissioning in the coming months.
TGOD has fully paid EnWave for the first 120kW REV™ machine and partially paid for the two REVTM systems that will no longer be delivered following the modification to the Purchase Agreement. The cash collected by EnWave related to the two REVTM systems that will not be taken by TGOD fully covers all the costs incurred by the Company related to fabrication, including an acceptable margin. The Company did not incur any losses as a result of the Purchase Agreement modification. Pursuant to the Purchase Agreement modification, EnWave now owns the two partially fabricated 120kW REVTM systems and will seek to redeploy the systems in alternative projects within cannabis or food verticals.
The royalty-bearing commercial license agreement between EnWave and TGOD remains in good standing, and TGOD plans to leverage the operational benefits made possible through REVTM for the high-precision, controlled, rapid dehydration of cannabis. The Company anticipates receiving the first royalties from TGOD in fiscal year 2020.
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EnWave Corporation, a Vancouver-based advanced technology company, has developed Radiant Energy Vacuum (“REV™”) – an innovative, proprietary method for the precise dehydration of organic materials. EnWave has further developed patent-pending methods for uniformly drying and decontaminating cannabis through the use of REV™ technology, shortening the time from harvest to marketable cannabis products.
REV™ technology’s commercial viability has been demonstrated and is growing rapidly across several market verticals in the food, and pharmaceutical sectors including legal cannabis. EnWave’s strategy is to sign royalty-bearing commercial licenses with innovative, disruptive companies in multiple verticals for the use of REV™ technology. The company has signed over thirty royalty-bearing licenses to date. In addition to these licenses, EnWave established a Limited Liability Corporation, NutraDried Food Company, LLC, to manufacture, market and sell all-natural dairy snack products in the United States, including the Moon Cheese® brand.
EnWave has introduced REV™ as a disruptive dehydration platform in the food and cannabis sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying.
EnWave currently offers two distinct commercial REV™ platforms:
- nutraREV® which is used in the food industry to dry food products quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour; and
- quantaREV® which is used for continuous, high-volume low-temperature drying.
More information about EnWave is available at www.enwave.net.
Brent Charleton, CFA
President and CEO
For further information:
Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
Dan Henriques, CPA, CA, Chief Financial Officer at +1 (604) 835-5212
Deborah Honig, Corporate Development at +1 (647) 203-8793
Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management’s expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third party claims referred to in this release are not guaranteed to be accurate. All third party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release