EnWave Announces Changes to its Equipment Purchase Agreement with The Green Organic Dutchman
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the "Company" - https://www.commodity-tv.com/play/enwave-targeting-profitability-in-2020-signed-joint-development-deal-with-gea-lyophil/) 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.
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.
Mr. Brent Charleton, CFA
President and CEO
For further information:
Brent Charleton, CFA , President and CEO at +1 (778) 378-9616
E-mail: [email protected]
Dan Henriques, CFO at +1 (604) 835-5212
E-mail: [email protected]
Deborah Honig, Corporate Development at + 1 (647) 203-8793
E-mail: [email protected]
Swiss Resource Capital AG
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