EnWave Corporation has signed a royalty-bearing commercial license agreement with an undisclosed, major Canadian cannabis company. Pursuant to the License Agreement, the Cannabis Partner has been granted the non-exclusive right to use EnWave’s proprietary Radiant Energy Vacuum (“REV™”) dehydration technology to produce cannabis products in Canada.
The Cannabis Partner has also acquired a 120kW REV™ machine, which it intends to use for the production of premium smokeable flower, cannabis plant material destined for extraction, and several edible products. EnWave will hopefully install and commission this machine at the Cannabis Partner’s facility in a shorter time period than normal, as the machinery has been fully fabricated and is ready for deployment.
The machinery was purchased back from a U.S. cannabis licensee of EnWave, who satisfied all payment obligations but never took possession of the equipment due to operational challenges. The amount paid to acquire the machinery from the U.S. cannabis licensee for re-sale allows EnWave to realize a margin comparable to the margin that would be recognized from the manufacture and sale of a new 120kW REV™ machine. Concurrent with the buyback of the machinery, the U.S. cannabis licensee and EnWave mutually agreed to terminate the license agreement held between the two entities.
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