EnWave Corporation (CVE:ENW) (OTCMKTS:NWVCF) reported the highest number of large-scale Radiant Energy Vacuum machines in fabrication during its fiscal Q1 2020, it said Wednesday.
The Vancouver-based company signed six new licensing agreements during the quarter, boosting its revenue to C$8.6 million, up 10% from C$7.8 million compared to the year-ago quarter.
EnWave is developing commercial applications for its Radiant Energy Vacuum (REV) dehydration technology in the cannabis, food and pharmaceutical industries.
READ: EnWave Corporation and Green Organic Dutchman alter purchase agreement of dehydration machines
The technology is a rapid, low temperature drying method that maintains the product’s colour, flavour, and nutrients during the drying process. The company says it is faster and cheaper than freeze drying, with better product quality than air drying or spray drying.
EnWave is pursuing a licensing strategy with partners around the globe and signed six new royalty-bearing agreements over the last few months in the food, agriculture and cannabis industries.
The firm has licensed royalty partners for cannabis and hemp drying in the United States, New Zealand, Switzerland and Australia, including ones with Helius Therapeutics Ltd, Cann Group Limited and a Swiss CBD company all signed during the quarter.
Moon Cheese relaunched
Its flagship Moon Cheese snack product was relaunched in 1Q 2020 with new packaging, branding and digital assets. The snack is now available in three different package sizes and two new flavours, bringing the total to 15.
Sales of Moon Cheese felt pressure during the quarter due to excess inventory in Costco’s Most Valuable Member program, but the firm said improved distribution in other channels and repeat sales were strong overall.
Overall, the firm said it maintained a strong working capital surplus of over C$25 million and a debt-free balance sheet, giving it a “robust foundation” for future company growth, EnWave said in a statement.
Its net loss over the three-month period ended December 31, 2019 came in at C$1.4 million or C$0.01 per share.
The company said its investments in sales and marketing expenses are expected to create “sustained future value” through increased distribution and new channel penetration.
Beefed up board
EnWave also said it has appointed Patrick Turpin to the company’s board of directors. A veteran in the consumer packaged goods space, Turpin brings over 30 years experience to the firm and previously served as a vice president at retail giant Costco.
In connection with the appointment, EnWave granted Turpin 150,000 stock options exercisable at Wednesday’s closing price on the TSX Venture Exchange, as well as an aggregate of 20,000 restricted share rights under the company’s plan. The rights will vest three years from the date of award, while the options are exercisable for a five-year period.
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