EnWave Announces Changes to its Equipment Purchase Agreement with The Green Organic Dutchman
February 14 2020 - 9:00AM
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 REV™ 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 REV™ systems
that will no longer be delivered following the modification to the
Purchase Agreement. The cash collected by EnWave related to the two
REV™ 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 REV™ 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
REV™ for the high-precision, controlled, rapid dehydration of
cannabis. The Company anticipates receiving the first royalties
from TGOD in fiscal year 2020.
About EnWave
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:
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, CFAPresident and CEO
For further information:
Brent Charleton, CFA , President and CEO at +1
(778) 378-9616 E-mail: bcharleton@enwave.net
Dan Henriques, CFO at +1 (604) 835-5212 E-mail:
dhenriques@enwave.net
Deborah Honig, Corporate Development at + 1
(647) 203-8793E-mail: dhonig@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
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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
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