AUGUST 29TH 2019, 05:30AM

EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) today reported the Company’s consolidated interim financial results for the third quarter ended June 30, 2019.

EnWave’s interim consolidated financial statements and MD&A are available on SEDAR at www.sedar.com and on the Company’s website www.enwave.net.

Key Financial Highlights for Q2 (expressed in ‘000s):

• Reported the highest ever quarterly revenue for the Company Q3 2019 of $10,075 compared to $8,773 in Q2 2019 and $6,779 in Q3 2018. Revenue growth was driven by increased REV^TM equipment orders by cannabis companies and continued growth in Moon Cheese^®
• Continued to be cash flow positive with Adjusted EBITDA^(*) of $139 for Q3 2019 compared to $1,313 for Q3 2018, a decrease of $1,174. Q3 YTD Adjusted EBITDA^(*) for the Company was $2,304, compared to $1,632 for Q3 YTD 2018.
• Consolidated net loss for the period after taxes was $1,322 for Q3 2019 compared to a net loss of $104 for Q3 2018, an increase of $1,218. Consolidated net loss after taxes for Q3 YTD 2019 was $1,561 compared to a net loss of $1,020 for Q3 YTD 2018, an increase of $541. The Company recorded a restructuring cost of $612 in Q3 2019 related to the reorganization of the sales and marketing function of NutraDried.
• Increased G&A expenses to $1,118 for Q3 2019 compared to $510 for Q3 2018, an increase of $608. The Company expanded its leadership team, including a new CEO for NutraDried and increased expenses related to securing additional royalty-bearing license agreements.
• Incurred S&M expenses of $1,203 for Q3 2019 compared to $1,105 for Q3 2018, an increase of $98. Important foundational investments were made to improve the Moon Cheese^® branding in preparation for a fall re-launch of the brand.
• Strengthened the balance sheet and completed a strategic investment with Aurora Cannabis Inc. (“Aurora”) in the Company for gross proceeds of $10,087. The cash available to finance growth in the business was $21,824 on June 30, 2019.

Significant Accomplishments:

• Commissioned the first 60kW REV^TM machine for Tilray Inc. (“Tilray”), marking first large-scale continuous cannabis processing line installed by the Company. This major milestone for the Company confirms that EnWave’s technology can consistently produce high-quality dried cannabis and offer significant cost and processing advantages for cannabis producers.
• Signed a royalty-bearing commercial sub-license agreement with Aurora, granting Aurora non-exclusive rights to use EnWave’s technology for processing cannabis in Canada. Aurora purchased two 120kW REV^TM machines and a 10kW machine for installation in Canada.
• Entered into royalty-bearing commercial license agreements with Aurora granting Aurora exclusive rights, with the rights to grant sub-licenses, for processing cannabis in the European Union (excluding Portugal) and South America. Aurora committed to purchasing a 60kW machine in 2020 for installation in South America and the Company is working with Aurora to confirm the purchase of a 120kW Good Manufacturing Practice (“GMP”) REV™ machine to be installed in Europe for Aurora to retain its exclusive rights.
• Partnered with Aurora to develop new innovations and intellectual property related to REV^TM and its applications in the cannabis sector by signing an intellectual property agreement and initiating new joint development projects.
• Secured the first bearing commercial license agreement for the dehydration of industrial hemp products in the U.S. with Electric Farms, LLC (“Electric Farms”). Electric Farms purchased a 10kW machine for commercial dehydration of legalized hemp products.
• Signed a royalty-bearing commercial license agreement with Calbee Inc. (“Calbee”) and received a purchase order for a 10kW machine. Calbee is one of the largest snack companies in Japan and is conducting intensive product development efforts on new REV^TM snack concepts.
• Signed a royalty-bearing commercial license agreement with Fresh Business Consulting S.L. (“Fresh Business”) for the production of premium dried fruit and vegetable products in Peru. Fresh Business purchased a 10kW machine to initiate commercial production and paid a deposit on a 100kW to retain exclusivity in Peru.
• Restructured the sales and marketing function of NutraDried to be managed in-house with the hiring a full-time Chief Marketing Officer and a full-time Senior Vice President of Sales. The addition of two experienced food industry executives is part of the strategy to grow the Moon Cheese^® brand and product distribution throughout the United States and Canada.
• Confirmed Moon Cheese^® will be distributed to all U.S. Costco divisions as part of the autumn Most Valuable Member (“MVM”) coupon program.

^(*) Non-IFRS Financial Measures:

Adjusted EBITDA is not a measure of financial performance under IFRS. We define Adjusted EBITDA as earnings before deducting amortization and depreciation, stock-based compensation, foreign exchange gain or loss, finance expense or income, income tax expense, non-recurring restructuring costs and non-recurring impairment charges. This measure is not necessarily comparable to similarly titled measures used by other companies and should not be construed as an alternative to net income or cash flow from operating activities as determined in accordance with IFRS. Please refer to the discussion included in the Company’s interim MD&A for June 30, 2019 and annual MD&A for the year ended September 30, 2018.

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Acerca de EnWave

EnWave Corporation, una empresa de tecnología avanzada con sede en Vancouver, ha desarrollado Radiant Energy Vacuum ("REV™"), un innovador método patentado para la deshidratación precisa de materiales orgánicos. La viabilidad comercial de la tecnología REV™ ha quedado demostrada y está creciendo rápidamente en varios mercados verticales de los sectores alimentario, del cannabis legal y farmacéutico. La estrategia de EnWave consiste en firmar licencias comerciales con regalías con líderes de la industria en múltiples verticales para el uso de la tecnología REV™. Hasta la fecha, la empresa ha firmado más de veinte licencias, abriendo ocho sectores distintos del mercado a la comercialización de productos nuevos e innovadores. Además de estas licencias, EnWave ha constituido una sociedad de responsabilidad limitada, NutraDried LLP, para desarrollar, fabricar, comercializar y vender productos de aperitivo de queso totalmente naturales en Estados Unidos bajo la marca Moon Cheese®.

EnWave ha introducido REV™ como el nuevo estándar de deshidratación en los sectores alimentario y de materiales biológicos: más rápido y barato que la liofilización, con mejor calidad del producto final que el secado al aire o el secado por pulverización. En la actualidad, EnWave cuenta con tres plataformas comerciales REV™:
1. nutraREV®, que se utiliza en la industria alimentaria para secar productos alimenticios rápidamente y a bajo coste, manteniendo altos niveles de nutrición, sabor, textura y color; y
2. quantaREV®, que se utiliza para el secado continuo de gran volumen a baja temperatura.

Para más información sobre EnWave, visite www.enwave.net.

EnWave Corporation
Dr. Tim Durance
Presidente y Consejero Delegado

Para más información:
John Budreski, Presidente Ejecutivo, +1 (416) 930-0914
Correo electrónico: jbudreski@enwave.net

Brent Charleton, Vicepresidente Senior de Ventas y Desarrollo Comercial, +1 (778) 378-9616
Correo electrónico: bcharleton@enwave.net

Deborah Honig, Desarrollo Corporativo, Adelaide Capital Markets en el + 1 (647) 203-8793
Correo electrónico: dhonig@enwave.net

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