The Vancouver-based advanced tech company, focused on its proprietary Radiant Energy Vacuum (REV™) dehydration technology, is making waves in the cannabis space, with shares up 42% year-over-year.
On Monday, shares of EnWave were closed up 6.6% at C$2.26 in Canadian trading and up 5.7% at US$1.67 in New York. Aurora shares inched up 0.2% at C$12.18 in Toronto, up 0.2% at US$9.06 in New York.
EnWave is developing commercial applications for its dehydration technology, in the cannabis, food and pharmaceutical industries. The company says it is faster and cheaper than freeze drying, with better product quality than air drying or spray drying.
In the cannabis world, time is money and EnWave's technology can reduce the time required to dry cannabis from between 5-7 days to less than an hour. The company says its low temperature drying retains cannabinoids and terpenes and its low-pressure drying prevents oxidation. The small machine footprint can help reduce the need for oversized drying rooms, with the drying time at an estimated 40 minutes from fresh to dry.
Aurora is not alone in using EnWave's technology. Tilray Inc (NASDAQ:TLRY) bought a REV system, for use in its facility in Portgual, and also has exclusing licensing rights to the technology. The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF) has also purchased a number of REV systems for its operations in Canada.
There are multiple layers to EnWave's deal with Aurora. The two also announced a royalty-bearing commercial license agreement, which would provide Aurora with exclusive rights to EnWave's patented REV drying technology, used for the production of cannabis materials in the European Union, aside from Portugal. Aurora also acquired a sub-licence so it can use EnWave's REV technology on two sites in Canada.
Aurora has secured options to exclusively license REV in Australia and in South America, aside from Peru, which gives it the right to sub-license the technology and share in the royalty payments. The companies will also work together to tweak the technology for the cannabis industry.
"EnWave's growth continues to accelerate, and we are delighted to have Aurora as an investor, industry partner and technology collaborator to further the enhancement and propagation of EnWave's REV drying technology," said CEO Brent Charleton, in a statement. "This partnership brings together two innovation leaders in the cannabis industry, and we look forward to working closely with the team at Aurora to deliver further value to our stakeholders."
EnWave has multiple commercial platforms
EnWave offers industrial-scale dehydration technology for commercial applications in the food and pharmaceutical spaces. It also provides machinery for drying bulk biological materials and pharmaceuticals in vials.
It has multiple commercial platforms, including nutraREV, which is used in the food industry to dry food products quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour; powderREV, used for dehydrating food cultures, probiotics and biochemicals, such as enzymes, below the freezing point. The company's quantaREV is used for continuous, high-volume low-temperature drying.
Contact Katie Lewis at [email protected]