Why EnWave Corporation’s REV Technology is Ready to Conquer the Dehydration Market

It’s rare that we come across a company with a disruptive technology which truly stands a chance to generate enormous profits by shaking up an established industry. EnWave Corporation (ENW – $1.16) is such a Company.

EnWave offers industrial-scale dehydration technology for commercial applications in the food and pharmaceutical spaces, an astonishing $400 billion worldwide market. The Company’s proprietary Radiant Energy Vacuum (“REV”) platforms are becoming the new global dehydration standard: faster and cheaper than freeze drying, and with better end product quality than air drying or spray drying.

Over the past years, the Company has developed three commercial-scale REV platforms: nutraREV is used in the food industry to dry fruits, vegetables, meats and other products quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and color; powderREV for the dehydration of bulk food cultures, probiotics and fine biochemicals such as enzymes; and quantaREV for continuous, high-volume low-temperature drying of sensitive food products in liquid or solid form. In addition, the Company has two developmental-stage REV platforms: bioREV and freezeREV to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies.

EnWave’s customer list truly validates its technology and potential. It has signed research agreements with Nestlé, Kellogg’s, R.J. Reynolds, Merck Pharma, and many others. In addition, it has royalty-bearing licenses with companies such as Bonduelle, Hormel Foods and Gay Lea Foods, many of which will start to generate revenues in 2015. An ideal entry point for investors as the Company will then have the means to accelerate its growth.

EnWave’s technology suite is protected by 17 patents either granted or pending. And it continues to file additional technology and process patents whenever R&D advances are made.

The Company signs royalty-bearing commercial licenses with leading food and pharmaceutical companies for the use of its revolutionary technology. Each license agreement restricts the partner’s use of the technology to specific applications. In addition to the royalty revenues, EnWave generates profits from machine sales and from its subsidiaries.

EnWave has also formed a Limited Liability Partnership, NutraDried LLP, to develop, manufacture, market and sell all-natural cheese snack products in the United States under the Moon Cheese brand. The Company has also signed a license and manufacturing agreement with NutraDried Creations to market the dried cheese and other REV snack products through private label distribution channels in the United States and Latin America. These cheese snacks are now available at Kroger, Costco, and several other retail chains.

Based on our estimate of 92 million shares outstanding, the intrinsic value of EnWave’s shares derived from our model is $2.77, which suggests significant upside potential over the medium-term for the Company’s shares from the current $1.16 price.

Download the first quarter 2015 EnWave Corp. Company Report. Download

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