EnWave’s Strategic Partner in Cannabis Space Takes Giant Leap Forward

EnWave Corporation (TSXV:ENW – $1.22 CAD & OTC:NWVCF – $0.93 USD & Frankfurt:E4U – €0.76) has been successful to make new inroads for its Radiant Energy Vacuum (REV) technology in so many different sectors that it seems there is always a new exciting breakthrough to report on for this Company. Most recently, there have been two significant advances that promise to build further momentum in sales growth and royalty payments.

The use of REV machines to improve the quality of cannabis products while also delivering greater production efficiency has enabled EnWave to build a strong relationship with its partner Tilray, one of the largest and most sophisticated producers of premium medical cannabis in the world.

Now Tilray has signed a Letter of Intent (LOI) with Sandoz Canada Inc, to develop new products and improve the availability and quality of medicinal cannabis for the Canadian market.

Alliance Formed with Highly Respected Pharmaceutical Company

Sandoz Canada, which is part of Novartis Group, has already established a recognized brand name within the Canadian marketplace as a producer and distributor of high quality pharmaceutical products. The widely anticipated launch later this year of legalized cannabis products, both for medicinal and recreational use, will include drug stores as distribution outlets. Since many Canadian consumers have already come to trust the Sandoz product lines, this market acceptance may play a role to build brand awareness and increase sales for the line of cannabis products that will become available through this new partnership.

The strategy will initially focus on developing and marketing non-smokable cannabis product lines for medicinal use. These include oils and gels that are administered in the treatment of specific illnesses and conditions that range from epilepsy to cancer. Tilray has been selected as the exclusive partner by Sandoz to develop these products, for distribution through Canadian pharmacies and hospitals.

One other benefit that is expected from this strategic partnership is the synergies that will come from the relationship that Sandoz has already built with physicians and pharmacists. As new cannabis products are approved for the Canadian market, Sandoz may be counted on to educate pharmacists and physicians about Tilray’s cannabis products. And as a trusted supplier to the Canadian market, Sandoz is also recognized by the patients that will have access to use the cannabis-based products as part of their treatment.

New NutraDried Fruit Stand Product Introduced at Anuga FoodTec Conference

The Anuga FoodTec Conference, held a few days ago in Cologne, Germany, is a trade fair for international food and beverage companies. It represents an opportunity to showcase new technology involved in food production. As an exhibitor of this conference, EnWave was able to demonstrate its REV technology to new potential clients in Europe and South America. These leads may evolve into TELOAs and/or sales agreements further down the road.

In addition, Anuga is an ideal place to highlight new products that have been developed. At this year’s show, EnWave, for the first time, showed NutraDried’s Fruit Stand product as a showcase to other potential manufacturers (watch video with EnWave’s Brent Charleton at Anuga FoodTec).

Fruit Stand is a healthy snack food based on servings of peaches, strawberries, mandarin oranges, pineapple, or blueberries that have been dried using REV technology. The line will be available exclusively through Amazon. The official launch at the powerful online sales platform will be mid-April. Amazon has committed to provide additional internal marketing support to generate greater sales. For example, ads may target Amazon clients that have already purchased other dried fruit snacks. In order to prepare for the significant amount of expected orders, Amazon has already submitted purchase orders.

Samples of the Fruit Stand flavors were presented during the Anuga conference and met with high approval. If the new line is successful it will then be made available for sale in high volume retail stores under a different brand name.

Conclusion

EnWave identified the emerging cannabis market as an attractive growth sector and the company has made it a priority to build relationships with strong partners in order to be effectively positioned for future success. This strategy is now beginning to pay off as its partnership with Tilray has taken on a new dimension.

Thanks to the new alliance formed with Sandoz, Tilray will have an inside track to build greater acceptance of its medicinal products for treatment of a variety of serious illnesses. In effect, this adds a complimentary channel for the marketing and distribution of its cannabis products, supported by the existing relationship that Sandoz has already established as pharmaceutical company. Tilray will also have the opportunity to participate in the development of entirely new cannabis products that may add to the net sales potential from this partnership.

EnWave’s management remains very bullish on the entire cannabis sector and continues to work towards securing additional partnership agreements that may build further leverage both in Canada and international markets.

The new product launch of the Fruit Stand line is also an exciting breakthrough for the Company. By securing a partner with the marketing clout of Amazon, it increases the potential for rapid sales growth. If this new line is successful, there is the opportunity to secure further sales growth using distribution channels to retail stores. Recommendation: Buy

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