EnWave All Set for Another Year of Spectacular Growth
EnWave Corporation (CA:ENW – $1.70 & US:NWVCF – $1.31 & GER:E4U – €1.17) offers industrial-scale dehydration technology for commercial applications in the food, cannabis, 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.
Longer term growth objectives for the Company will be powered by royalty-bearing commercial license agreements for REV technology. EnWave reported a total of 14 new royalty agreements in 2019. Several of these agreements have already expanded in scope, including additional REV machine sales.
The NutraDried Foods subsidiary also announced another purchase for a 120kW REV machine following the end of the quarter. NutraDried is performing extremely well with a plan in place to secure the next phase of growth in 2020.
In particular, the rapid expansion for REV processing in the cannabis/hemp sector was a strong driver of growth. The importance of the sector was highlighted by the announcement of a strategic investment by Aurora Cannabis Inc. The deal advanced more than $10 million in working capital to EnWave through a financing arrangement.
Core operations for EnWave going forward will be bolstered by additional REV machine sales and improved margins. Meanwhile the steady growth in revenues continues from the stream of royalty payments due from partnership agreements. Anticipation of further gains in the cannabis sector, along with other rapid growth channels, will contribute towards achieving sustained profitability.
The REV rollout continues, with leverage to multiple sectors. Success has been achieved through individual corporate partnerships and for the production of specific product lines. New applications are currently being developed for REV technology even as sales from established partnerships continue to build. The outlook for additional growth is therefore very strong even after the breakout achieved during this record year of sales.
Download the fourth quarter 2019 EnWave Corp. Company Report.
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