EnWave Accelerating Rapidly – Signs New Agreement With Major Table Grape Producer
EnWave Corp (TSXV:ENW – $0.90 CAD & OTC:NWVCF – $0.69 USD), which offers a new dehydration standard for the food and biological markets, signed a technology evaluation agreement with a major table grape producer in the State of California.
During a seven month period the grape producer has the right to evaluate EnWave’s Radiant Energy Vacuum (REV) technology to develop dehydrated crispy grape snacks. In order to do so, the California company will rent a 10kW commercial-scale nutraREV machine for which it will pay EnWave US$37,500 as an upfront rental fee.
If the company decides to exercise its exclusive option to produce grape snack products in the State of California, it will be required to submit a purchase order for at least one 100kW REV machine.
Shortened Sales Cycle
Very notable in this agreement is the relatively short technology and market evaluation phase of only seven months, while this could take 24 months or more in the past.
With EnWave already having several commercial clients, its negotiating position with new potential customers is getting stronger. That way, it’s able to negotiate shorter and stricter deadlines.
Currently, over 40 companies are at varying stages of the sales process. Many of which are testing the merits of REV technology for a diverse range of applications that include food, pharmaceutical and industrial end products. Of the companies that are evaluating REV technology, several commercial license opportunities are under negotiation.
Institute of Food Technologists (IFT) Show
At the IFT Show, held last week at McCormick Place in Chicago, EnWave added many more potential clients to its list. We heard the Company added 80 sales leads, making it the best IFT show ever.
Judging from the highly trafficked expo floor and packed session rooms, IFT’s 75th conference was the place to be for food scientists, technologists and related professionals from academia, government and industry. More than 20,000 food professionals from around the globe came to see suppliers of ingredients, equipment, processing, and packaging for the food industry.
EnWave’s business is accelerating rapidly. In the past weeks alone it has signed Technology Evaluation and License Option Agreements with companies such as Perdue Farms and Ultima Foods, and started up commercial production at Gay Lea Foods, Natural Nutrition and Hormel Foods.
As EnWave’s unique dehydration technology is becoming widely known, companies recognize its potential. The food industry is extremely competitive and producers are constantly looking to make the difference. For the first time in many years a brand new dehydration technology enters the market, faster and cheaper than freeze drying, with better end product quality than air drying or spray drying.
Moreover, thanks to EnWave’s business model, that gives the exclusive right to sell certain REV dehydrated products in restricted areas, it’s vital for producers to be the first to enter into an agreement.
Rest assured that the recent new deals are being noticed in the food industry and that other companies don’t want to miss the boat. Our price target for EnWave is $3.15.
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