EnWave Signs Nineteenth Royalty Bearing Agreement – First Income Expected in 2017
EnWave Corporation (TSXV:ENW – $1.01 CAD & OTC:NWVCF – $0.77 USD & Frankfurt:E4U – €0.70) has signed a Commercial Royalty-bearing License with Bare Foods Co., a leading US healthy snack food company.
The past few months Bare Foods conducted extensive test work at EnWave’s facility in Vancouver. Convinced of the merits of EnWave’s technology, Bare entered into the License and will potentially purchase a smaller scale commercial Radiant Energy Vacuum (REV) machine. If that’s the case, the dryer may potentially be delivered later this year, to initiate first commercial production late 2017.
Bare Foods Co. produces fruit snacks under the Bare Snacks brand name. The company was founded in 2001 with the goal to create simple, real-food snacks. Today, Bare Foods is based in San Francisco, California and produces baked fruit chips, including apple chips, coconut chips, and banana chips.
Bare Snacks are available in the U.S. market in natural and grocery stores including Whole Foods Market, Sprouts, Safeway, and Publix as well as national retailers such as Target and Amazon. Suggested retail prices range from $0.99 to $4.99, depending on the size of the bag.
Similar to previous royalty agreements, EnWave granted Bare Foods certain product and geographic exclusivity rights. However, it is worth noting that EnWave recently changed its exclusivity strategy by granularly describing the covered products and geographic boundaries in its licenses. In the past EnWave would grant a royalty-bearing partner exclusivity, for example, for grapes in Canada, whereas now it will accord exclusivity for a particular type of grapes, which can only be REV dried to a certain end moisture content, and used for a particular purpose.
This is a very interesting evolution, as EnWave can now give plenty more companies exclusivity for a certain product and geographic area.
Snacks Gone Simple
Bare Foods is the creator of the delicious Snacks Gone Simple product line. All bare snacks are made from freshly picked whole fruit that’s simply baked – never fried – with no artificial ingredients nor preservatives.
The Bare Snacks family of products currently includes:
- Bare Apple Chips. Made from slices of real, fresh apples, which are simply baked for a hearty, flavorful crunch. All varieties are fat free and gluten free with no added sugar and no preservatives.
- Bare Coconut Chips. Crafted in small batches from sweet and fragrant Nam Hom coconuts grown exclusively in Thailand’s central plains. Bare Coconut Chips are toasted and lightly seasoned to satisfy sweet or savory cravings. They are available in four different flavors.
- Bare Banana Chips. A first-of-its-kind banana chip that is baked rather than fried. Crafted in small batches, bare Banana Chips are made from fresh, ripe bananas that are slowly baked to a perfect crunch, with no added oil or sugar.
To date, EnWave has entered into nineteen royalty-bearing commercial licenses with major food processing and pharmaceutical companies.
The Company’s technology licensing business model continues to gain momentum with each additional commercial agreements. As soon as commercial partners launch their REV dried product, EnWave starts generating sales. Most recently, REV dried wasabi pills and INTAKT cheese snacks were launched. In addition, plenty of other REV products are either already on the market or will soon be launched.
Moreover, EnWave is executing as planned with more Technology Evaluation and License Option Agreements (TELOAs) and royalty bearing commercial agreements being signed.
The Company’s stock price is significantly undervalued, even more so in light of its recent decline. We are adding to our position. Buy recommendation.
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