VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 16, 2013) - EnWave Corporation (TSX VENTURE:ENW)(FRANKFURT:E4U) ("EnWave", or the "Company") announced today that it has signed a royalty-bearing Commercial License ("the License Agreement") and Equipment Service Agreement ("the Equipment Agreement") with a major North American enzyme producer ("the Licensee"). Under the terms of the Equipment Agreement EnWave is committed to supplying two commercial powderREV™ machines for the production of several dehydrated enzymes used for in a number of food related applications. The Licensee has an established market for the enzymes with a number of Tier 1 customers.
In addition, the Licensing Agreement provides the Licensee with an option to license powderREV™ for the production of an additional enzyme protein category to support other business development opportunities being developed by its global affiliates.
The first machine is expected to be delivered to the Licensee's facility in September 2013, followed by the second machine in the summer of 2014. EnWave will pay for the capital cost of the equipment and receive a royalty payment for each kilogram of enzyme dehydrated in the process with a targeted annual return of between 30% and 50% on capital invested, subject to overall capacity utilization. After the initial installation, there will be a start-up approval process to confirm acceptance by the Licensee's end customers prior to beginning large scale commercial production.
After an extensive evaluation period including several successful efficacy tests, the Licensee has committed to investing in the needed facility modifications and operating personnel to support the installation and use of EnWave's Radiant Energy Vacuum ("REV™") technology. The commercialization of powderREV™ is a significant advancement for the Company's REV™ technology suite, as powderREV™ is capable of accelerating the drying times of biomaterials below freezing, while reducing production costs and maintaining high efficacy of the end product. Within the License Agreement, EnWave has the right to showcase the commercial powderREV™ plant to other potential licensees in the future. The global enzyme market alone is estimated to reach USD$7 billion in 2013 and the Company hopes to further penetrate this market after demonstrating initial commercial success.
"This commercial license opens up an attractive new high value market for EnWave," stated Dr. Tim Durance, Chairman & Co-CEO. "We continue to gain commercial traction for our game-changing technology and believe we have the opportunity to secure additional licenses later in 2013 in other new product areas."
EnWave Corporation is a Vancouver-based industrial technology company developing commercial applications for its proprietary Radiant Energy Vacuum (REV™) dehydration technology. Recently, EnWave formed a Limited Liability Partnership with Lucid Capital Management to develop, manufacture, market and sell all-natural cheese snack products in the United States. The company licensed REV™ technology to Milne Fruit Products Inc in 2011, its first major U.S. customer, to support a launch of healthy berry snacks and powders across most major markets in North America. In addition, EnWave has entered into a wide range of research and collaboration agreements with an expanding list of multinational companies, including Nestlé, Kellogg's, Grupo Bimbo, Grimmway Farms, Ocean Spray Cranberries, Hormel, Bonduelle, Cherry Central, Sun-Maid Growers, Gay Lea Foods and Merck. EnWave is introducing REV™ as a new dehydration standard in the food and biological material sectors: potentially faster and cheaper than freeze drying, with better end product quality than air drying or spray drying.
EnWave currently has six REV™ platforms: commercial-scale nutraREV® and MIVAP® are used in the food industry to dry fruits, vegetables, meat, herbs and seafood quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour. The Company is also developing powderREV™ for bulk dehydration of food cultures, probiotics and fine biochemicals such as enzymes; quantaREV™ for continuous, high-volume low-temperature drying of pastes, gels, liquids, or particulates; and bioREV™ and freezeREV™ as new methods to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies. More information about EnWave is available at www.enwave.net.
Dr. Tim Durance, Chairman & Co-CEO
Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.