VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2011) - EnWave Corporation (TSX VENTURE:ENW)(FRANKFURT:E4U) ("EnWave" or the "Company") today announced that it has signed a Term Sheet (the "Term Sheet") to acquire the patents and know-how that it currently licenses from The University of British Columbia ("UBC") for Radiant Energy Vacuum ("REV") dehydration technology (the "Technology"). According to the Term Sheet, EnWave and UBC have agreed to enter into a definitive agreement (the "Agreement") to formalize the transactions contemplated by the Term Sheet by April 15, 2011.
The Agreement would expand EnWave's intellectual property portfolio in the field of vacuum microwave dehydration technology. According to the Agreement, EnWave would also have no further royalty or other financial obligations to UBC for the Technology. The final form of the Agreement is subject to the approval of EnWave, UBC and applicable regulatory authorities.
"This agreement will strengthen EnWave's global market leadership in vacuum microwave technology as we offer our customers unique technology alternatives to replace conventional drying methods," said John McNicol, President and Co-CEO of EnWave. "It also caps EnWave's payments to UBC for the Technology."
Under the Term Sheet provisions, EnWave would pay UBC CDN$5,500,000 in cash and common shares of EnWave, subject to adjustment based upon share price fluctuations occurring prior to the period ending 30 days after the end of the standard four-month hold period for UBC's shares. The adjustment provisions are intended to preserve the value that UBC would receive under the Agreement and allow EnWave to limit the number of shares issued to a maximum of 1,500,000 million common shares.
EnWave currently has five REV platforms designed to provide high-speed, high-quality dehydration of food and biomaterials: commercial-scale nutraREV™ is used in the food industry to dry fruits, vegetables, meat, herbs and seafood quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour. The Company is also developing powderREV™ for the bulk dehydration of food cultures, probiotics and fine biochemicals such as enzymes; quantaREV™ for continuous, high-volume low-temperature drying of pastes, gels, liquids, or particulates; and bioREV™ and freezeREV™ as new methods to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies, giving these products a longer shelf-life and potentially enabling worldwide shipment and storage with less costly refrigeration.
Using proprietary technologies developed in conjunction with UBC, EnWave is commercializing a new method for dehydrating food and biological materials using REV technology under its nutraREV™, powderREV™, quantaREV™, bioREV™ and freezeREV™ brands. REV technology combines microwave energy transfer under vacuum to dehydrate and alter structures and drive chemical reactions, thereby creating unique product characteristics for both food products and medical applications that include fruit, vegetables, probiotics, enzymes, proteins, food cultures, vaccines and antibodies. More information about EnWave is available at: www.enwave.net.
John McNicol, President & Co-CEO
Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Agreement being entered into or the conditions for entering into the Agreement being satisfied, the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. There is no guarantee that transactions contemplated under the agreements for the acquisition of the Intellectual Property will close, there is no guarantee the Company's REV technology can or will improve processes in the target industry; even if the Company's REV technology can be used as described in this document, there is no guarantee that such use will result in orders for the Company's REV technology. All figures comparing REV technologies to freeze drying or other dehydration technologies are provided as examples of data obtained through the Company's own scientific and testing programs; each product must be tested individually to determine the benefits of using REV.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.