The agreement with Glasshouse Botanics Inc sees EnWave licence its proprietary Radiant Energy Vacuum (REV) dehydration technology to Glasshouse in return for a royalty based on the weight of dried finished cannabis.
Shares of EnWave gained over 4% in Friday morning trading at C$2.28.
EnWave’s dehydration technology is faster and cheaper than freeze drying, with better product quality than air drying or spray drying, according to the company.
Under the terms of the agreement, Glasshouse Botanics will lease a 10 kW REV machine for three months as the cultivator moves towards commercial production. At the end of the three-month period, Glasshouse will have the option to purchase the dehydration unit in order to extend the licence term.
The Vancouver-based company also said Friday that it has granted 870,000 stock options to one director and certain employees of the company.
The options are exercisable at C$2.19 per share for a five-year period following the date of issue.
Earlier this week the technology company posted record revenues of C$10 million during its fiscal third quarter, an all-time high.
--Updated to add share price--
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