While most cannabis investors probably haven't heard of EnWave Corporation (TSXV:ENW) (FRA:E4U), the company's Radiant Energy Vacuum technology allows for the precise dehydration of organic materials. This allows allows cultivators and producers to shorten the time from plant harvest to marketable cannabis products.
Because of the way this technology allows large-scale cannabis producers to cash in on their crops sooner, Canadian licensed producer Tilray has taken notice with purchase orders for 10kW REV and 60kW REV machinery from EnWave.
Owned by cannabis private equity firm Privateer Holdings, Tilray currently serves tens of thousands of patients in eight countries spanning four continents. It's no wonder they are interested in bringing product to market sooner.
Beyond just using EnWave's Radiant Energy Vacuum machines, Tilray signed a royalty-bearing license agreement the exclusive right to use and sub-license EnWave's dehydration technology for cannabis processing in Canada.
In addition to the cannabis industry, EnWave's technology applies to several market verticals in the food, and pharmaceutical sectors. In the recent quarter, EnWave signed a deal with a major Australian banana producer, as well as purchased the remaining 49% interest in NutraDried LLP.
NutraDried is now a wholly owned subsidiary in the business of manufacturing and distributing "Moon Cheese", an all-natural crunchy snack food made using the EnWave’s technology. Now that they're on shelves in Costco's Midwest region, it will be interesting to see how the Moon Cheese line impacts the company's growth as this is its first club format distribution opportunity.
This company's growth rate is nothing to balk at, with roughly $4,519,000 in sales for Q1 2018 alone. This is compared to revenues of roughly $3,467,000 for Q1 2017.
We'll be keeping an eye on EnWave it pursues additional commercial opportunities within the Canadian cannabis sector in partnership with Tilray. We'll also be keeping an eye on the company's overall performance going forward after reporting impressive consolidated financial results for the first quarter ended December 31, 2017.
EnWave has introduced "REV™" as the new dehydration standard in the food and biological material sectors because it is faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. An additional platform from EnWave, called "freezeREV®", is being developed as a new method to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies.
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