VANCOUVER, BC--(Marketwired - December 16, 2016) - EnWave Corporation (TSX VENTURE: ENW) (FRANKFURT: E4U) ("EnWave", or the "Company") today reported its annual results for the year ended September 30, 2016. These annual consolidated financial statements and MD&A are available on SEDAR at www.sedar.com and on our website at www.EnWave.net.
The Company reported consolidated revenues for the year of $14.9 million, compared to $5.9 million in the prior year. The 2016 consolidated net loss from continuing operations of $1.8 million was a reduction of $3.2 million from the prior year net loss of $5.0 million.
Cash flows from operating activities for the year, prior to changes in non-cash working capital, increased to positive $1.2 million from negative $1.7 million in the prior year, which was an improvement of $2.9 million.
Fiscal 2016 marked a year of significant commercial advancement for EnWave, building upon the previous successes achieved by the Company regarding its proprietary REV™ dehydration technology. Significant accomplishments made by the Company since October 1, 2015 include:
- receiving purchase orders for two large-scale commercial REV™ machines for food production;
- commissioning the startup of one large-scale commercial REV™ machine for cheese snack products;
- signing four new royalty-bearing commercial licenses;
- receiving purchase orders for six small-scale commercial REV™ machines for food products;
- signing or extending thirteen Technology Evaluation and License Options Agreements;
- strengthening its patent protection portfolio;
- securing the release of $1.5M of restricted cash relating to a former subsidiary and completing an equity private placement with gross proceeds of $5M.
During the fiscal year, EnWave received two large-scale REV™ machine purchase orders. The first purchase order was for a 100kW nutraREV® machine from Gay Lea Foods Co-operative (Canada), which was installed and commissioned for commercial production of cheese snack products during the summer. This was an expansion in production capacity from Gay Lea's small-scale commercial REV™ machinery. EnWave also received a 120kW quantaREV® machine order from Milne Fruit Products (USA) to double their production capacity from one to two large-scale machines.
EnWave also signed royalty bearing commercial licenses and received purchase orders for small-scale commercial REV™ machines from Agricola Industrial La Lydia (Costa Rica), Perdue Farms (USA), Kesito LLC (Greece) and Eregli Agrosan (Turkey), which purchased two small-scale REV™ machines. Nanuva Ingredients (Chile) also purchased a second small-scale REV™ machine to expand their commercial production.
During the year, EnWave signed or extended Technology Evaluation and License Options Agreements ("TELOAs") with Ultima Foods Incorporated (Canada), Maple Leaf Foods Inc. (Canada), Jack Link's Inc. (USA), a Major Australasian Dairy Company, a Major Australasian Meat Company, a Major European Food Processor, a Mexican Food Processor and post fiscal year-end, with a Major European Dairy Company, a Major European Meat Processor, a Major American Pulse Crop Processor and with Born Wild LLC (USA). TELOAs generate revenue through product development or REV™ equipment lease arrangements and are a first step towards commercial licenses and production.
Patent protection for EnWave's proprietary technology was enhanced during the year by the granting of ten additional geographic patents related to the nutraREV®, powderREV® and quantaREV® platforms.
With respect to corporate matters, EnWave secured the release of $1.5M of restricted cash relating to a portion of the collateral in support of a project related to a customer of EnWave's former subsidiary, Hans Binder Maschinbeau GmbH, appointed Dr. Richard Mitchell as Senior Vice President, Business Development - Pharmaceutical, retained investor relations services from The Equity Group (based in New York) and, at the beginning of the fiscal year, successfully completed a $5 million equity "Bought Deal" private placement.
For 2017, EnWave will vigorously pursue its strategy of further commercializing its REV™ technology platform through sales of additional REV™ machinery and adding new licensees to the Company's royalty-bearing licensing portfolio. EnWave's strategy is to increase the global royalty-bearing dehydration capacity of its partners by selling additional commercial REV™ machines, and adding new partner companies to its licensing portfolio.
EnWave Corporation, a Vancouver-based advanced technology company, has developed Radiant Energy Vacuum ("REV™") -- an innovative, proprietary method for the precise dehydration of organic materials. REV™ technology's commercial viability has been demonstrated and is growing rapidly across several market verticals in the food and pharmaceutical sectors. EnWave's strategy is to sign royalty-bearing commercial licenses with industry leaders in multiple verticals for the use of REV™ technology. The company has signed seventeen royalty-bearing licenses to date, opening up eight distinct market sectors for commercialization of new and innovative products. In addition to these licenses, EnWave has formed a Limited Liability Partnership, NutraDried LLP, to develop, manufacture, market and sell all-natural cheese snack products in the United States under the Moon Cheese® brand.
EnWave has introduced REV™ as the new dehydration standard in the food and biological material sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. EnWave currently has three commercial REV™ platforms:
- 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® which is used for the bulk dehydration of food cultures, probiotics and fine biochemicals such as enzymes below the freezing point, and
- quantaREV® which is used for continuous, high-volume low-temperature drying.
An additional platform, freezeREV®, is being developed as a new method to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies. More information about EnWave is available at www.enwave.net.
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 Company's strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third party claims referred to in this release are not guaranteed to be accurate. All third party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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.
Dr. Tim Durance
President & CEO