After signing a technology evaluation agreement with a major Australasian dairy company a couple of months ago, EnWave Corp (TSXV:ENW – $1.01 CAD & OTC:NWVCF – $0.77 USD) has now closed a similar deal in the same region with a leading manufacturer of fresh and processed meat products.
The Australasian company will rent a 10kW Radiant Energy Vacuum (REV) dehydration machine from EnWave to conduct product and market tests. According to the agreement, the company has a maximum of 12 months to conclude its R&D. The pilot-scale REV equipment will be delivered later this year.
It wasn’t specifically mentioned in the press release, but the meat processor may have to purchase a large scale commercial REV dryer within 12 months if they wish to commercialize their products and retain their exclusivity for meat products in Australia and New Zealand.
Meat Snack Producers – Another Pillar Of EnWave’s Success
In addition to dairy, fruits and vegetables, meat is clearly becoming another pillar of EnWave’s success. The Company has currently signed agreements with six leading meat processors spanning Europe, North America, South America and now Australasia.
Five major meat and protein processors are engaged in technology evaluation relationships and one multi-billion dollar revenue company has signed a royalty-bearing commercial license. EnWave has signed a technology evaluation agreement with the following companies:
- Maple Leaf Foods Inc, a major Canadian food processing company that employs approximately 12,000 people and exports to more than 20 global markets including the US and Asia. The agreement, which was signed in August 2015, grants Maple Leaf the right to evaluate EnWave’s REV technology for the potential production of a variety of food applications;
- Jack Link’s, the number one meat snack manufacturer worldwide, extended its technology evaluation and license option agreement into 2016. This indicates that Jack Link’s has already made very good progress with the development of one or more products, and pays a monthly rent for a small test dryer. If it saw no potential in REV dried products, it would have returned the test unit to EnWave and moved on;
- Campofrio Food Group, Europe’s leader in the processed meats sector is conducting product development work using the REV dehydration technology. The company intends to create a number of new, healthy dried meat products for potential commercialization;
- Perdue Farms Inc, a leading food and agricultural products company, is also evaluating EnWave’s technology. If the results are positive, Perdue has the option to license the use of REV, on an exclusive basis, in the U.S. for a variety of food applications; and
- A major Australasian company. Unfortunately, EnWave couldn’t release its name. What we do know is that the red meat processing sector is a significant contributor to the Australian economy. The industry contributes A$16.2 billion in gross domestic product and underpins more than 148,000 full-time equivalent (FTE) jobs. Consequently, if this is a major company in such a huge sector, than this could become another lucrative deal for EnWave.
EnWave also has a royalty-bearing commercial license in place with:
- Hormel Foods Corporation, a $15 billion dollar company known for its numerous meat and food products. In addition to a 100kW dryer, Hormel also purchased a 2kW REV machine for product development and a 10kW REV machine for conducting market studies. This indicates that the well-known food processor is eager to develop and test new products with EnWave’s technology.
From July 16th to 19th EnWave representatives will attend the 2016 Institute of Food Technologists (IFT) show at McCormick Place South in Chicago.
The IFT show is the largest annual food ingredients event in the world. More than 23,000 food science and technology experts from more than 90 countries get together to learn about the latest food ingredients, equipment, processing, and packaging suppliers. This is where the latest global food trends — and the products and innovations designed to address them — are on display. In other words, a place where EnWave perfectly fits in.
Previous editions were highly successful for EnWave and lead to many new leads. We’re curious if this will again be the case. We’ll make sure to report back about show.
EnWave has again expanded its footprint in the dried meat sector. More news is expected in the course of 2016 from several of the companies with which EnWave has a technology evaluation agreement.
We’re also glad to see the Company’s stock price moving back above $1. We know from experience this is a tough barrier to cross, but once passed it could go fast. Especially when the stock continues to be supported by the excellent news flow typical for EnWave. Buy recommendation.
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