VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2013) - EnWave Corporation (TSX VENTURE:ENW)(FRANKFURT:E4U) ("EnWave" or "the Company") is pleased to announce that, through a newly created wholly-owned subsidiary in the United States called EnWave USA Corporation, it entered today into a 70-30 Partnership Agreement with Lucid Capital Management Ltd. ("Lucid') to form NutraDried LLP ("the LLP"), a limited liability partnership established in the United States of America. EnWave and Lucid have agreed to establish this LLP to develop, manufacture, market and sell 100% all-natural cheese snack products under the nutraDRIED™ trademark. Together, EnWave and Lucid have committed up to a total of CAD$2,000,000 to the LLP for the purposes of developing a market, infrastructure and nutraREV® capacity for producing healthy cheese snack products in the State of Washington for sale across the U.S. market.
In April 2013 the LLP is expected to begin producing cheese snack products for initial market introductions and early stage sales, utilizing the Company's smaller scale commercial nutraREV® equipment. In anticipation of a successful market launch, EnWave has initiated building a larger scale nutraREV® machine to be available for delivery in Q4 2013; either to the Partnership or to another near term commercial opportunity expected to be secured during the year.
EnWave has also entered into a royalty-bearing Commercial License ("the License Agreement") with NutraDried LLP. The License Agreement grants the LLP the right to use Radiant Energy Vacuum ("REV™") technology for the production of natural cheese snack products in the United States of America. Furthermore, the License Agreement provides the LLP with the right to market and sell such products on a global basis. The LLP will pay EnWave a revenue-based royalty of 5%, with a provision of up to 10% in certain scenarios.
NutraDried LLP also has the option to extend the License Agreement to include Belgium and the Netherlands, provided a second commercial nutraREV® machine is purchased for the European region within 12 months. Lucid ownership and management have extensive experience and retail distribution relationships in the U.S and European markets with access to existing manufacturing facilities in the Netherlands where the second plant would be established. Under the agreement Lucid also retains a share purchase option to increase its equity ownership in the LLP from 30% to 49% through the end of 2014.
A Trademark Agreement has also been entered into with the LLP that outlines the required use of the nutraDRIED™ trademark and logo. Pursuant to the usage requirements, the LLP must include the nutraDRIED™ logo on every package sold, regardless of size. This requirement is a positive step towards building the nutraDRIED™ brand and associating it with a new, healthy, flavourful, all-natural snack product. EnWave's goal is to establish nutraDRIED™ as a symbolic term that indicates high levels of nutrients, color and flavour in all-natural products.
Strategic Partner with Proven Success
Lucid Capital Management Ltd. is part of the Wiebco Group of Companies controlled by the parent company Wiebco Investments Ltd., which is a private holding and management company controlled by J. Hugh Wiebe and his family. Mr. Wiebe has been a Director of EnWave Corporation since December 2010.
Mr. Wiebe was formerly a shareholder and Chairman of the Board of Brookside Foods Ltd. ("Brookside"), which was sold to Hershey Company in January 2012. During his time with Brookside, Mr. Wiebe helped build a highly recognized national chocolate brand through an extensive U.S. retail distribution network.
Mr. Wiebe was also an early pioneer in the development of enzymes for a variety of food applications, and has developed international operations and customer relationships for these products in Europe, Japan and North America. He also has extensive experience with both spray drying and freeze drying technologies as they are used to preserve food and biomaterials. Mr. Wiebe is currently the President and CEO of Bioplex Nutrition Inc. and serves as a Board member for a number of companies operating in the food products sector.
All Natural Cheese Snack Products
The cheese snack products are made of 100% natural dried cheese. They can be produced in a wide variety of flavours and are very healthy, possessing high levels of protein and calcium. Currently, there are very few shelf-stable all-natural cheese snacks on the market; most cheese snacks only contain about 10-15% real cheese with many other non-dairy filler ingredients. The LLP believes that their healthy alternative could be very successful in a market that continues to experience growth in natural and organic product areas by offering a product line with rich flavour's, vibrant colors, crunchy texture and a puffed appearance; all characteristics created through the REV™ dehydration process.
The consumer trend towards more natural and healthy products is growing rapidly in the U.S. and around the world. Natural Foods Merchandiser's 2012 Market Overview Survey showed that sales in the United States of all natural and organic products jumped 10 percent to nearly USD$91 billion last year. Establishing a direct distribution channel for nutraDRIED™ cheese snacks is the first step towards introducing the nutraDRIED™ brand and offers EnWave the strategic option of expanding its nutraDRIED™ brand in other healthy snack areas through the LLP network or through other licensed partners.
Prior to signing the LLP agreement with Lucid, EnWave received interest from several other well-established companies regarding the innovative all-natural cheese snack product and numerous other shelf-stable snack products that would be considered 'all-natural' when produced using REV™ technology. To support this interest, EnWave is actively pursuing additional cheese and other licensing opportunities, in a number of geographic locations.
"The combination of our high quality innovative cheese snack product with the processing and distribution expertise of our partner is an attractive recipe for potential success," stated Dr. Tim Durance, Chairman and Co-CEO of EnWave. "We feel that the optimal value we can create for EnWave shareholders is by not only generating a royalty stream from this operation, but by also owning a stake in future sales, profits and equity value."
"Lucid continues to engage with entrepreneurial companies like EnWave, who have proprietary, innovative technology and attractive growth prospects," stated Mr. Rufino Dee, President and CEO of Lucid Capital Management. "We believe that there is a tremendous opportunity to use our distribution relationships and marketing expertise to grow the nutraDRIED™ brand into a household name, synonymous with healthy, tasty, all-natural snack products."
EnWave Corporation is a Vancouver-based industrial technology company developing commercial applications for its proprietary Radiant Energy Vacuum (REV™) dehydration technology. Recently, EnWave formed a Limited Liability Partnership with Lucid Capital Management to develop, manufacture, market and sell all-natural cheese snack products in the United States. The company licensed REV™ technology to Milne Fruit Products Inc in 2011, its first major U.S. customer, to support a launch of healthy berry snacks and powders across most major markets in North America. More recently, EnWave licensed REV™ technology to one of its Tier 1 multinational collaborators from the list below. In addition, EnWave has entered into a wide range of research and collaboration agreements with an expanding list of multinational companies, including Nestlé, Kellogg's, Grupo Bimbo, Grimmway Farms, Ocean Spray Cranberries, Hormel, Bonduelle, Cherry Central, Sun-Maid Growers, Gay Lea Foods and Merck. EnWave is introducing REV™ as a new dehydration standard in the food and biological material sectors: potentially faster and cheaper than freeze drying, with better end product quality than air drying or spray drying.
EnWave currently has six REV™ platforms: commercial-scale nutraREV® and MIVAP® are 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 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. More information about EnWave is available at www.enwave.net.
Dr. Tim Durance, Chairman & Co-CEO
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