More Machine Orders and Growing Royalty Streams Ahead for EnWave
EnWave Corp (TSXV:ENW – $0.83 CAD & OTC:NWVCF – $0.63 USD) had an outstanding first quarter, ended December 31, 2015. Revenues more than quadrupled and the Company reported positive cash flow from operations for the first time in its history.
The Company will continue to aggressively pursue its commercialization strategy by confirming additional REV machine orders, growing royalty streams with established royalty partners, and the rising sales of Nutradried LLP’s Moon Cheese – a healthy, dried cheese snack.
Moon Cheese is on the track of becoming EnWave’s first blockbuster product. These snacks are now available in more than 20,000 retail stores and 8,900 Starbucks locations across North America. Nutradried’s expected sales for the 2016 fiscal year is currently projected at $5 to $6M.
Bonduelle has launched InFlavor vegetables; Milne Fruit has been gaining traction with its MicroDried products; dried cheese snacks from several manufacturers will hit the shelves in the coming months. Consequently, the sales of REV dried products are bound to increase which will positively impact EnWave’s royalty income.
Moreover, Sutro Biopharma, a pharmaceutical company based in San Francisco, is scheduled to receive a commercial scale powderREV machine in the first half of 2016. Commercial production is expected to begin immediately after the testing phase’s completion, contingent on whether the REV dryer is successful with the production of Sutro’s products. This development will mark an achievement for EnWave in 2016 showcasing the technology’s commercial application in the pharma industry.
We reiterate our buy recommendation for EnWave Corp. with a price target of $3.23, which is 289% above today’s stock price.
|Download the first quarter 2016 EnWave Corp. Company Report.|
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