EnWave Corporation (TSXV:ENW – $1.05 CAD & OTC:NWVCF – $0.76 USD & Frankfurt:E4U – €0.67) offers industrial-scale dehydration technology for commercial applications in the food and pharmaceutical spaces. The Company’s Radiant Energy Vacuum (REV) platforms are becoming the new global dehydration standard, as they are faster and cheaper than freeze drying, and have better end product quality than both air drying and spray drying.
EnWave continues to make outstanding progress with its royalty partners by receiving purchase orders for additional REV machinery. No less than 14 REV machines are currently under construction for companies such as Ereğli Agrosan, Van Dyk Specialty Products, Merck and Sutro Biopharma.
To date, EnWave has entered into twenty royalty-bearing commercial licenses with major food processing and pharmaceutical companies. It’s fair to say that the Company is uniquely positioned from an investment case perspective in that it offers the opportunity for exposure to a diverse portfolio of royalty streams.
EnWave is also advancing several prospective royalty partners that are conducting initial testing and product development under Technology Evaluation and License Option Agreements (TELOAs).
We’re confident that Moon Cheese sales in the following quarters will pick up. Slant Design, the distributor of Moon Cheese, is doing an excellent job, as it has recently expanded distribution of the snack to 2,000 Rite Aid pharmacy stores, 1,600 CVS stores, and 440 Targets in the United States.
All of this should help the Company reach being cash flow positive in the second half of fiscal year 2017.
We reiterate our buy recommendation for EnWave Corp. with a price target of $3.49, which is 232% above today’s stock price.
|Download the second quarter 2017 EnWave Corp. Company Report.|
|Smallcaps.us Advice: Buy||Price Target: $3.41||Latest Company Report (pdf)|
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