EnWave Corporation (CVE:ENW) (OTCMKTS:NWVCF) on Monday provided an update on the commercialization efforts of Bonduelle Group, a long-time royalty partner.
The Canadian company said it is committed to working with Bonduelle, given some recent developments.
Bonduelle introduced its InFlavor brand of premium frozen vegetables to many food service clients in early 2019, and EnWave had previously agreed to extend Bonduelle’s exclusivity period to use its Radiant Energy Vacuum technology for the production of dehydrofrozen vegetables in North America until September 30.
This extension included a requirement to purchase a commercial-scale 400kW REV machine prior to that date.
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In July, and following its initial introduction to the food service industry, Bonduelle launched the InFlavor dehydrofrozen line of vegetables in North America through its well-known Arctic Garden retail brand -- an initiative that aims to justify the potential purchase of additional REV dehydration machines from EnWave in the near future.
However, with the launch of InFlavor, Bonduelle has delayed its prospective commitment to an additional REV purchase order, Enwave said in a statement.
This delay triggers the conversion of its royalty-bearing license to be non-exclusive and thus allows EnWave to now pursue additional partners in the same product area.
Bonduelle will continue to build market demand for the InFlavor line and pay an undisclosed royalty on all REV products produced under its commercial license agreement with EnWave.
Both parties plan to continue their strong collaboration and work towards increased commercial success that will support further investment in REV drying capacity, EnWave said.
EnWave, based in British Columbia, licenses, builds and installs commercial-scale dehydration platforms for applications in the food, pharmaceutical, and industrial sectors to manufacturing companies in Canada.
Shares of EnWave rose 0.50% to C$2.00 on Bay Street and 1.5% to US$1.35 in New York.
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