EnWave Corp Again Expands Presence In Europe
EnWave Corporation (CA:ENW – $2.00 & US:NWVCF – $1.50 & GER:E4U – €1.36) has closed a new commercial agreement in the dairy products sector. This time, Patatas Fritas Torres S.L. (Patatas), a diversified snack food company based in Spain, has purchased a 10kW REV unit for the processing of a variety of dried cheese snack products. EnWave has granted a non-exclusive commercial license to Patatas for REV processing. Installation of the new unit is expected to be completed in December, 2019.
Product development is currently underway and the launch date for commercial distribution is planned for the first half of 2020. Initially, Patatas will be producing its line of premium cheese snacks for distribution to the local market in Spain. Following the launch, additional growth is planned through exports to other European markets. A royalty shall be paid to EnWave based on the sales of all production using the REV machine.
This agreement follows a phase of evaluation and testing prior to the decision to formally adopt the technology. Representatives of Patatas visited the EnWave facility as part of this process. EnWave provided assistance to enable Patatas to create its custom snack food line.
Patatas Fritas Torres is a Catalonian family business, known for its innovative and entrepreneurial approach to the development and marketing of premium snacks.
Distribution and Marketing Strength of Strong Partner Supports Rapid Growth Model
Patatas is a respected, family owned company with a reputation for creating innovative, premium foods. At a prestigious food and beverage event recently held in Paris, the well-capitalized company was recognized with the International Trophy for Quality. The decision by Patatas to embrace REV technology for the production of its quality snack foods therefore is yet another endorsement for EnWave within the highly competitive food processing subsector.
Patatas has already established an international distribution network for its popular line of potato chips. This is expected to provide an advantage when the new cheese snack products are ready for export to other countries. As such Patatas will become a valuable partner as EnWave works to build its clout within the European market.
The deal represents the twelfth royalty bearing commercial license for dairy product processing worldwide. The rapid growth through this important market channel demonstrates the value proposition that REV technology presents for the development of innovative new products.
Pilot Plant Adoption of REV Technology Presents Opportunities to Attract New Clients
In other news this week, EnWave reported that it has signed a Research and Development License Agreement with Moorepark Technology Limited. Based in Cork, Ireland, Moorepark offers versatile pilot plant services for food processing equipment. Their ultra-modern, 3000 square meter facility may be rented by food manufacturing companies. This allows these companies to conduct product development, training and even small scale start up manufacturing.
Moorepark committed to purchase a 10kW REV unit. This machine will be included with the suite of processing equipment available within its pilot plant facility. The machine may also be used for smaller scale commercial production with the prior approval of EnWave. Some companies have already been in contact with Moorepark to discuss scheduling of the REV unit.
Similar to the arrangement with the College of Agricultural and Life Sciences (CALS) at Cornell University, EnWave anticipates that Moorepark will broaden the reach of the product rollout and enable potential new client companies to evaluate REV technology. The deployment at CALS contributes to research and development initiatives using REV processing in the food industry.
It is expected that the operation of the REV unit by Moorepark will attract new clients to REV technology. This will accelerate the use of REV processing within the food products sector. EnWave anticipates establishing partnerships with similar demonstration facilities worldwide.
Conclusion
The news reported this week contributes to the advancement of growth objectives for EnWave. Achieving the sale of additional REV units will sustain the order pipeline for the manufacturing division. This builds the quarterly revenues as these units are eventually delivered and installed. It will also add to the impressive annual sales record already in process for 2019.
More importantly, the longer term growth aspirations will also benefit. The commercial license granted to Patatas generates royalty payments based on the production of premium snack foods. And the demonstration facility operated by Moorepark will create opportunities to attract potential new clients to adopt REV processing. This in turn may lead to additional license agreements.
Both of the machine sales achieved this week also enhance the appeal of the technology itself. As more reputable corporations embrace REV technology it represents and implied endorsement. The effectiveness and efficiency of REV machines becomes more accepted as the technology is widely adopted by individual high-profile companies that are established leaders within specific industrial sectors. This sales momentum will certainly create a much easier process to achieve new license agreements with other potential clients.
EnWave is showing no signs of slowing down during this record year of growth. The positive announcements and new machine sales support a higher share price for the stock. This trend positions EnWave among the best small cap technology stories in Canada.
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