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Thursday, 09/23/2021 6:03:53 PM

Thursday, September 23, 2021 6:03:53 PM

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EnWave Signs Royalty-Bearing License with Second Large U.S. Cannabis Multi-State Operator and Receives Purchase Order for 120kW REV(TM) Machine for Commissioning in 2021
GlobeNewswireSep 23, 2021 8:30 AM EDT
VANCOUVER, British Columbia, Sept. 23, 2021 (GLOBE NEWSWIRE) -- EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”) announced today that it has signed a royalty-bearing commercial license agreement (the “License”) with a second large U.S. cannabis multi-state operator (“MSO”). The MSO is one of the largest North American cannabis producers. This License grants the MSO the rights to use REV™ technology for the rapid and gentle processing of material amounts of premium cannabis.

The MSO is also purchasing a large-scale 120kW Radiant Energy Vacuum (“REV™”) machine for use at its existing cultivation facility. The 120kW REV™ machine is anticipated to be commissioned before the end of the 2021 calendar year.

Prior to committing to using REV™ technology, the MSO conducted extensive tests to confirm the advantages of using REV™ versus incumbent drying methods. The tests used REV™ as a method for drying for multiple strains, and included several controlled benchmark studies to confirm the improved retention of terpenes and cannabinoids. The terpene and cannabinoid levels of the REV™-dried samples were clearly superior to the conventional room/rack dried flower. Further, the smoke experience of REV™-dried cannabis when compared to existing product was undiscernible.

The MSO’s testing employed EnWave’s Terpene Max™ drying protocol, which offers a fast, gentle drying method that removes moisture homogenously from cannabis at controlled, low temperatures, which are below the point where decarboxylation occurs. When compared to other drying methods, REV™ protocols can be customized to improve terpene retention while preserving equivalent or higher cannabinoids. Typically, cannabis flowers dried using the Terpene Max™ program yield greater than 10% more retained terpenes than room/rack dried flower. Bioburden is also materially reduced when using select REV™ protocols. Drying times are reduced from multiple days to less than two hours using REV™ technology.

A single 120kW REV™ machine will process in excess of 200lbs of wet cannabis biomass per hour, yielding approximately 45lbs of dried finished product. That translates into over 200,000lbs of dried cannabis produced per year. REV™ machinery is manufactured for GACP compliance and GMP upon request.

Redeployment of REV™ Machine and Termination of License

Concurrent with the signing of the License, the Company terminated a commercial license agreement previously announced on April 26, 2019 (the “License”). EnWave had fabricated and delivered two 120kW REV™ machines and one 10kW machine that were fully paid for but never installed. The REV™ machines have been held in storage since the licensee decided to close certain of its cultivation facilities in Canada. EnWave has repurchased these three machines.

To facilitate the commissioning (before year end) of the 120 kW REV™ machine sold to the MSO, EnWave will re-sell one of the two repurchased 120kW REV™ machines. EnWave is optimistic that the second 120kW REV™ machine will be sold in the coming months to a new or existing licensed partner.