EnWave Shareholder Update

Vancouver, B.C.

Given the series of recent developments at EnWave over the last several months, we thought it would be best to send a letter to shareholders to provide an update on a number of areas within our business. Topics covered include the general state of affairs, NutraDried’s ongoing turnaround, and the lawsuit filed against EnWave’s former CEO, as well as details for our Q3 earnings release.

General State of Affairs

Through Fiscal 2021 we’ve continued to improve and accelerate the commercialization of our patented Radiant Energy Vacuum (REV™) technology broadly across several major markets. We also took decisive action to correct NutraDried’s course in February, sparking a turnaround that will be evident in coming quarters.  Notwithstanding the business challenges presented by the pandemic, we’ve managed to generate record gross margins, adjusted EBITDA and profit in our machine sales and royalty generation business unit.

NutraDried Turnaround

We initiated the restructuring of NutraDried’s operations in February, which had us rip out many discretionary and several unnecessary expenses within this business unit. We hired an accomplished new CEO, Brad Lahrman, who has seamlessly fit into our core management team. It’s early, but we are very happy with Brad’s leadership, pragmatic planning and proactive ‘get it done’ attitude. Velocities have improved over prior year, the business has generated material new bulk sales orders and both revenue and margin are trending in the right direction. There is still lots of work to do, but we are bullish on a strong turnaround from the very poor performance reported in Q1 and Q2 fiscal 2021.

We anticipate that NutraDried’s future growth will be driven by continued velocity improvement and expanded distribution, substantial increases to our bulk product sales, (which has a nice, clean, healthy margin profile) and from our new product innovation pipeline, which we think will win us further new distribution. We recently launched our Protein Blitz Mix product line and plan to complement our existing Moon Cheese format with an additional format later this year. Winning back rotational distribution in Costco is still very much a target for our NutraDried sales team and we feel these new product formats could provide the spark to light the fire again in the club channel for us.

Lawsuit Against Former CEO and Others

We’ve always stated that EnWave will vigorously protect the foundation of our business – our proprietary technology and intellectual property, which includes our patents, trademarks, know-how and machinery. Last Friday night we announced the filing of a Notice of Civil Claim in the B.C. Supreme Court that alleges EnWave’s former CEO, Mr. Tim Durance and other defendants associated with Mr. Durance have used and disclosed EnWave’s confidential information in breach of their obligations and covenants with EnWave. The Notice of Civil Claim seeks damages, an accounting of profits and injunctive relief.

A few hours prior to issuing Friday’s news release, we served Mr. Durance with the Notice, which triggered our public disclosure.  We intend to aggressively pursue this case with all legal means at our disposal to safeguard our intellectual property and we are confident about the outcome.

It is beyond the scope of this letter to summarize the claims EnWave is pursuing in its Notice of Civil Claim.  The Notice of Civil Claim is a public document.  If you would like to review the filed Notice of Civil Claim, please direct an email to info@enwave.net requesting a copy and we will send it to you.

Q3 Fiscal Reporting

We expect to publish our Q3 interim consolidated financial statements and MD&A in the afternoon of August 26^th, 2021. We will also hold an investor conference call the following morning on the 27^th. Details of this call will be distributed a few weeks in advance.  We are excited to review our Company’s progress and highlight some of the exciting projects that are evolving quickly, including work with the U.S. Army, intensifying interest from big pharma, several legitimate cannabis deals, prospective manufacturing scale-ups with existing royalty partners and the start-up of REVworx™, our toll manufacturing operation.

Thank you for your ongoing support as an EnWave shareholder and I hope you can join us at our investor call on August 27^th.

Very best regards,

Brent Charleton, CFA

CEO and President

EnWave Corporation

D O W N L O A D  T H E   U P D A T E   H E R E 

About EnWave 

EnWave Corporation, a Vancouver-based advanced technology company, has developed a 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 high-quality, 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. It has signed over forty royalty-bearing licenses to date in twenty countries worldwide. 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:

1. nutraREV^® which is a drum-based system that dehydrates organic materials quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour; and,
2. quantaREV^® which is a tray-based system used for continuous, high-volume low-temperature drying.

More information about EnWave is available at www.enwave.net.

EnWave Corporation

Mr. Brent Charleton, CFA
President and CEO

For further information:

Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: bcharleton@enwave.net

Dan Henriques, CPA, CA, CFO at +1 (604) 835-5212
E-mail: dhenriques@enwave.net

For Media Inquiries:
Email: media@enwave.net

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) accept responsibility for the adequacy or accuracy of this release.