EnWave Sells NutraDried Assets, Signs Royalty-Bearing License with Creations Foods U.S. Inc. for Continued Moon Cheese Production and Sales
March 15 2023 - 9:00AM
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the
"Company") today announced that it has agreed to sell
certain assets (the “Asset Sale”) of NutraDried Food Company LLC
(“NutraDried”) to Creations Foods U.S. Incorporated (“Creations
Foods”), a successful healthy snacking company located in
Washington State. Creations Foods is a portfolio company of Rio
Investment Partners, a Canadian firm that focuses on innovation in
the agri-food space. The Asset Sale to Creations Foods includes the
Moon Cheese® brand, as well as other NutraDried trademarks,
auxiliary equipment, and saleable inventory.
EnWave has also executed a royalty-bearing
commercial license agreement with Creations to produce cheese
snacks in the United States (the “License”). Creations purchased
one of the two 100kW Radiant Energy Vacuum (“REV™”) machines
installed at NutraDried’s facility (the “REV™ Purchase Order”). The
REV™ Purchase Order will generate a margin commensurate with
EnWave’s target margin for typical REV™ machine sales. EnWave
intends to strategically re-sell the second 100kW REV™ machine to
either a current or new licensed royalty partner in the coming
quarters and has already re-sold the 10kW REV™ machine from
NutraDried to a current royalty partner.
Total consideration for the License, REV™
Purchase Order, and Asset Sale was $2 million USD, plus the cost of
select saleable inventory, which will be paid over two years. The
majority of the proceeds will be received within 270 days and are
expected to more than cover the total cost of the orderly wind-down
and dissolution of NutraDried.
Creations Foods will seamlessly takeover the
production, sale, and distribution of the Moon Cheese® product
portfolio. All NutraDried customers have been informed of this
transition and both parties are optimistic about the future for the
better-for-you snack brand. Creations Foods will also entertain
bulk dried cheese opportunities that complement their branded
product business. Pursuant to this operating transition, NutraDried
has assigned its lease to Creations Foods beginning April 1,
2023.
The License, REV™ Purchase Order, and Asset Sale
will immediately improve EnWave’s cash royalty generation potential
and allows for the Company to allocate all resources to grow its
technology licensing business. EnWave has a strong pipeline of
prospective new large-scale REV™ machine orders targeted for fiscal
2023 and several royalty partners have material REVdried™ product
launches planned in the next nine (9) months.
About Creations Foods
Creations Foods is an innovative snack
food company dedicated to creating unique eating experiences
that both delight and nourish. Our primary purpose is to offer
creative, better-for-you foods without compromising
nutritional profile, quality, or taste.We operate out of a
high-volume, gluten-free facility located in Ferndale, Washington
producing mini-cookies, crackers, wafers, cheese crisps and other
snack foods. This state-of-the art facility is dedicated to
producing unique branded as well as private-label and
co-manufactured offerings that permit indulgence without
compromise.
About EnWave
EnWave is a global leader in the innovation and
application of vacuum microwave dehydration. From its headquarters
in Vancouver, BC, EnWave has developed a robust intellectual
property portfolio, perfected its Radiant Energy Vacuum (REV™)
technology, and transformed an innovative idea into a proven,
consistent, and scalable drying solution for the pharmaceutical and
cannabis industries that vastly outperforms traditional drying
methods in efficiency, capacity, product quality, and cost.
With more than fifty royalty-generating partners
spanning twenty countries and five continents, EnWave’s licensed
partners are creating profitable, never-before-seen snacks and
ingredients, improving the quality and consistency of their
existing offerings, running leaner and getting to market faster
with the company’s patented technology, licensed machinery, and
expert guidance.
EnWave’s strategy is to sign royalty-bearing
commercial licenses with food and cannabis producers who want to
dry better, faster and more economical than freeze drying, rack
drying and air drying, and enjoy the following benefits:
- Food and ingredients companies can
produce exciting new products, reach optimal moisture levels up to
seven times faster, and improve product taste, texture, color and
nutritional value.
- Cannabis producers can dry four to
six times faster, retain up to 20% more terpenes and 25% more
cannabinoids, and achieve at least a 3-log reduction in
crop-destroying microbes.
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
Dylan Murray, CFO at +1 (778) 870-0729 E-mail:
dmurray@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, the Company ceasing to make
investments in NutraDried, the timing of the wind- down and
dissolution of NutraDried, expectations around the cost of winding
down NutraDried, and the Company's intended focus for the future
are forward-looking statements. 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, including that the
process of winding up NutraDried will involve time and expense to
the Company materially greater than anticipated, that the
realization of assets of NutraDried will not sufficiently cover the
orderly wind-up of NutraDried, which could result in the
requirement for additional funding by the Company to complete such
wind-up, that the foregoing developments will adversely affect the
Company, in terms of cost, management time and focus, outlook or
reputation; the ability of the Company to achieve its longer-term
outlook, the ability to lower costs, and the other risk factors set
forth in the Company's public filings. 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.
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