VANCOUVER, British Columbia, Feb. 23, 2018 (GLOBE NEWSWIRE) -- EnWave Corporation (TSX-V:ENW) (FSE:E4U) (“EnWave”, or the "Company") today reported the Company’s consolidated financial results for the first quarter ended December 31, 2017.
During the first quarter of 2018, EnWave made significant progress in the commercialization and deployment of its Radiant Energy Vacuum (REVTM) dehydration technology. The superior product quality and economic advantages of using REV™ technology as an alternative to conventional options is being proven in several market verticals on a global basis. The first quarter of fiscal year 2018 marked the commercial launch of REVTM in to the rapidly growing medical cannabis sector. EnWave signed a royalty-bearing commercial license agreement with Tilray®, a major licensed producer in Canada, and received purchase orders for 10kW REVTM and 60kW REVTM machinery. EnWave delivered the 10kW REVTM machine to Tilray® in February 2018 and has commenced construction of the 60kW commercial processing REVTM unit. The Company, in partnership with Tilray®, will pursue additional commercial opportunities for REV™ within the Canadian cannabis sector through a sub-licensing structure outlined in the current agreement.
In addition to the Tilray® license, EnWave also signed royalty-bearing commercial license agreements with Howe Foods, the second largest banana producer in Australia, and AvoLov LLC, a U.S. based snack food company. Both companies purchased 10kW REVTM machines to commence commercial royalty-bearing production. EnWave’s technology continues to capture and increase market share in the food, cannabis and pharmaceutical drying industries. EnWave anticipates continued commercial success and growth in the worldwide deployment of REV™ technology.
EnWave also continued to expand its royalty partnership and machine sales pipeline through joint produce development projects under technology evaluation and license option agreements (“TELOAs”) with prospective partner companies. Since the start of fiscal year 2018, EnWave has entered into three new TELOAs with prospective royalty partners to evaluate the business case for the adoption of REV™. Currently, the Company has 13 companies actively engaged in TELOA projects and 2 companies with advanced R&D agreements. EnWave’s strategy under these projects is to demonstrate the product innovation made possible and attractive processing economics available through the use of REVTM technology.
Further details include:
Acquisition of Remaining 49% of NutraDried
On February 21, 2018, EnWave completed the acquisition of the 49% non-controlling interest in NutraDried LLP, bringing the Company’s ownership to 100% of the equity interest in NutraDried LLP (“NutraDried”). NutraDried is a wholly owned subsidiary in the business of manufacturing and distributing Moon Cheese®, an all-natural crunchy snack food made using the EnWave’s REVTM technology. The acquisition of the non-controlling interest in NutraDried will allow the Company to pursue additional commercial opportunities using the installed 100kW nutraREV® processing line, as well as enhance the ability for EnWave to use NutraDried’s processing capabilities as a showcase to prospective royalty partner companies. NutraDried is a profitable business segment of the Company, reporting $716,000 in net income for fiscal year 2017, and $416,000 for Q1 2018.
Key Financial Highlights for Q1 2018 (expressed in $ ‘000s):
Consolidated Performance Summary:
($ ‘000s) | Three months ended December 31, | ||||||
2017 | 2016 | Change % | |||||
Revenues | 4,519 | 3,467 | 30 | % | |||
Direct costs | 3,093 | 2,683 | 15 | % | |||
Gross margin | 1,426 | 784 | 82 | % | |||
Operating Expenses | |||||||
General and administration | 593 | 535 | 11 | % | |||
Sales and marketing | 590 | 305 | 93 | % | |||
Research and development | 272 | 291 | (7 | %) | |||
| 1,455 | 1,131 | 29 | % | |||
Net loss for the period | (397 | ) | (618 | ) | (36 | %) | |
Loss per share – continuing operations: | |||||||
Basic and diluted | (0.01 | ) | (0.01 | ) |
EnWave’s interim consolidated financial statements and MD&A are available on SEDAR at www.sedar.com and on the Company’s website www.enwave.net/financials.
(*) Non-IFRS Financial Measures
Cash flow from operations prior to changes in non-cash working capital is not a measure of financial performance under IFRS. This measure is not necessarily comparable to similarly titled measures used by other companies and should not be construed as an alternative to net income or cash flow from operating activities as determined in accordance with IFRS. Please refer to the discussion included in the Company’s MD&A for the three months ended December 31, 2017.
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 industry leaders in multiple verticals for the use of REV™ technology. The company has signed over twenty royalty-bearing licenses to date, opening up nine distinct market sectors for commercialization of new and innovative products. In addition to these licenses, EnWave has formed a Limited Liability Partnership, NutraDried LLP, to develop, manufacture, market and sell all-natural cheese snack products in the United States under the Moon Cheese® brand.
EnWave has introduced REV™ as the new dehydration standard in the food and biological material sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. EnWave currently has three commercial REV™ platforms:
An additional platform, freezeREV®, is being developed as a new method to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies. More information about EnWave is available at www.enwave.net.
EnWave Corporation
Dr. Tim Durance
President & CEO
For further information:
John P.A. Budreski, Executive Chairman at +1 (416) 930-0914
E-mail: [email protected]
Brent Charleton, CFA , Senior Vice President, Sales and Business Development at +1 (778) 378-9616
E-mail: [email protected]
Deborah Honig, Corporate Development, Adelaide Capital Markets at + 1 (647) 203-8793
E-mail: [email protected]
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.
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