Vancouver, BC

EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) today reported the Company’s consolidated financial results for the fourth quarter and fiscal year ended September 30, 2021.

EnWave’s vacuum-microwave machine and royalty business performed materially better in fiscal 2021 than in fiscal 2020, with record margins and profitability.

NutraDried, the Company’s wholly-owned subsidiary, struggled during the first two fiscal quarters leading to a material restructuring that positively improved results in Q3 and Q4. The turnaround at NutraDried is well underway with new leadership and there are material opportunities to further improve the performance of this business unit in fiscal 2022.

Consolidated Financial Performance:

* Adjusted EBITDA is a non-IFRS financial measure. Refer to the disclosure below and in the Company’s MD&A regarding non-IFRS financial measures.

Los estados financieros consolidados anuales de EnWave y el MD&A están disponibles en SEDAR en www.sedar.com y en el sitio web de la empresa www.enwave.net.

Key Financial Highlights for Q4 (expressed in ‘000s):

• The Company reported consolidated revenue for Q4 2021 of $6,906 compared to $7,351 in Q3 2021 and $10,784 in Q4 2020.
  • EnWave’s Q4 2021 business unit revenue was $3,879 compared to $1,601 in Q4 2020, an increase of $2,278. EnWave ramped revenues from Radiant Energy Vacuum (“REV^™”) machine sales with current and new licensees for the food and cannabis industries.
  • NutraDried’s Q4 2021 revenue was $3,027 compared to $9,183 for Q4 2020, a decrease of $6,156 largely due to the elimination of a large national buy-one, get-one Costco promotion shipped in Q4 2020. NutraDried continues to rebuild distribution for its Moon Cheese^® product portfolio and subsequently has confirmed new Costco shipments scheduled in Q1 and Q2 2022 on both Canada and the U.S.
• Gross margin for Q4 2021 was 34% compared to 20% for Q4 2020, a major increase due to the confirmation of higher margin REV™ machine sales during the period. Gross margin in Q3 2021 was 36%, and the 34% achieved in this quarter was broadly consistent with a strong margin profile. Throughout 2021, EnWave successfully redeployed three large-scale REV™ machines that were not being utilized from two Canadian cannabis partners, generating robust margins in its machine sales business.
• Adjusted EBITDA^(*), a non-IFRS financial measure, for Q4 2021 was a loss of $223 compared to Adjusted EBITDA^(*) of $20 for Q4 2020 and Adjusted EBITDA^(*) of $937 for Q3 2021. The Adjusted EBITDA^(*) for Q4 2021 was near to break-even, and the Company remains focused on further market penetration at EnWave and NutraDried in pursuit of consistent, growing profitability. The Company made significant progress towards this target since the restructuring and cost control program implemented at NutraDried in Q2 2021.
• EnWave purchased and cancelled 1,572,900 common shares in Q4 under the Normal Course Issuer Bid at an average share price of $1.01 using cash of $1,597.
• Obtención de la aprobación de TSX Venture Exchange para una oferta de emisor de curso normal que comienza el 29 de octubre de 2021 y finaliza el 28 de octubre de 2022, por la que EnWave tiene derecho a comprar hasta 2.204.101 acciones en cualquier período de 30 días hasta un máximo de 10.778.194 acciones durante el año.

Significant Corporate Accomplishments in Q4 2021:

• Signed a royalty-bearing commercial license agreement and sold a 10kW GMP REV™ machine to Cannaponics PTY Limited, an Australian cannabis company.
• Advanced the development of using REV™ in the pharmaceutical sector through a material transfer agreement with AstraZeneca AB (NASDAQ:AZN) to dry monoclonal antibodies and completed the installation of a pilot-scale pharmaceutical REV™ machine with GEA Lyophil GmbH (“GEA”). EnWave has a joint development agreement with GEA in place to advance the design and application of microwave-assisted lyophilization for pharmaceutical applications, and the pilot-scale machine will be used to conduct demonstrations for interested pharmaceutical companies. GEA has several leading global pharmaceutical companies confirmed to trial REV™ in 2022.
• Completed the commissioning of a third 10kW REV™ machine for the U.S. Army at its third-party manufacturing partner’s facility, Bridgford Foods Corporation (NASDAQ: BRID). The machine will be used by Bridgford Foods to produce Close Combat Assault Rations for field testing under the U.S. Army’s development program.
• Signed a royalty-bearing commercial license agreement and sold a 10kW GMP REV™ to Medical Kiwi Limited, a New Zealand cannabis company.
• Signed a royalty-bearing commercial license agreement with a leading Colombian dairy company and sold a 10kW machine for installation in Colombia to conduct initial commercial market trials. If initial efforts are successful, the Colombian dairy company will require additional REV™ machinery to scale for meaningful commercial production.
• Formed a global strategic partnership with Dole Worldwide Food & Beverages Group for the use of REV™ technology to produce Innovative Nutrition Solutions. Dole purchased a 10kW REV™ machine to conduct intensive market trials. The strategic partnership with Dole will leverage EnWave’s REV™ technology to bring better-for-you snacking options to its global customer base under its industry-leading brand. Concurrent in its snack product development, EnWave and Dole are collaborating on the development of superior functional ingredients that use upcycled fruit materials.
• Signed a royalty-bearing commercial license agreement and sold a 10kW GMP REV™ to a second Australian cannabis company.
• Developed extensive cannabis drying protocols using the Company’s proprietary Terpene Max™ rapid drying protocol and collected empirical data supporting both the quality and processing advantages for EnWave’s technology in the cannabis industry. Results from controlled studies show that cannabis flower dried using TerpeneMax™ on average contains 10-20% more terpenes than room or rack dried flower, and in many instances contained higher THC content than the control samples.
• Signed a royalty-bearing commercial license agreement with one of the largest American multi-state operators (the “MSO”). The MSO conducted extensive diligence over the advantages of using REV™ for the rapid and controlled drying of cannabis for both combustible and extract products and purchased a 120kW REV™ system to commence commercial operations using the technology.
• Added three new sales channel representatives to advance the sales, marketing and licensing of REV™ machinery into the European and Latin American markets.

Significant Corporate Accomplishments Subsequent to Q4 2021:

• Commissioned a 120kW REV™ machine for the large-scale processing of premium smokable cannabis for the Illinois-based cannabis partner. This now provides the second in-market use-case for the value-added processing of cannabis using the Company’s proprietary TerpeneMax™ drying protocol. EnWave anticipates generating the royalties from the partner’s use of the technology in Q1 2022.
• Encargo de una máquina REV™ de 100 kW para Patatas Fritas Torres ("Torres") en España para ampliar el lanzamiento comercial de aperitivos de queso totalmente naturales para el mercado europeo. Torres ha lanzado su marca de aperitivos de queso "Just This" utilizando la tecnología EnWave(justthis-snacks.com/en/).
• Secured a national promotion for 10oz Gouda Moon Cheese^® with Costco Canada that is expected to ship in late Q1 and into early Q2 2022. Confirmed an additional rotation for Moon Cheese^® with a U.S. region of Costco for Q2 2022. NutraDried will continue to pursue Costco as a strategic customer for the club channel while aggressively pursuing growth in the U.S. grocery channel and in bulk sales.
• Venta de una segunda máquina REV™ de 10 kW a Dairy Concepts IRL de Irlanda para ampliar la fabricación de su gama de aperitivos de queso estables Cheese O's(ie).
• Firmado un acuerdo de evaluación tecnológica con Protein Isolate Plant International Inc. ("PIP International") para evaluar el posible uso comercial de la tecnología REV™ en la instalación de procesamiento de fraccionamiento húmedo de guisantes amarillos a gran escala de PIP International.
• Entered India, a major new market for REV™ production, by signing a Technology Evaluation and License Option Agreement with M/S Lalsai Dehy Foods (“LD Food”) and placing a 10kW REV™ machine under rental with LD Food for extensive product development on agricultural products for the Indian market.
• Advanced a new product launch opportunity at NutraDried in preparation for a Spring 2022 launch intended to strengthen NutraDried’s competitive advantage as a category innovator in the rapidly growing healthy snack space. NutraDried plans to explore, and when appropriate, launch innovative and exciting new products to leverage the use of REV™ in the better-for-you snack vertical.

EnWave’s executive management will be holding a conference call to discuss its 2021 Fourth Quarter and 2021 Annual Financial Results and the Company’s state of affairs.  Prepared remarks will be given followed by a question-and-answer session for shareholders.

Conferencia telefónica:

EnWave’s executive management will be holding a conference call to discuss its 2021 Fourth Quarter and 2021 Annual Financial Results and the Company’s state of affairs.  Prepared remarks will be given followed by a question-and-answer session for shareholders.

Date: December 16, 2021

Time: 7:00am PST / 10:00am EST

Participant Access: 1-877-407-2988 (toll-free number)

Webcast: https://78449.themediaframe.com/dataconf/productusers/enw/mediaframe/47460/indexl.html

^(*) 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 or recovery and non-recurring impairment, restructuring and severance charges and government assistance. 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 annual MD&A for the year-ended September 30, 2021 for a reconciliation from net loss to Adjusted EBITDA.

DESCARGUE LA ACTUALIZACIÓN AQUÍ

Acerca de EnWave

EnWave Corporation, una empresa de tecnología avanzada con sede en Vancouver, ha desarrollado un vacío de energía radiante ("REV™"), un método innovador y patentado para la deshidratación precisa de materiales orgánicos. EnWave ha desarrollado además métodos patentados para secar y descontaminar uniformemente el cannabis mediante el uso de la tecnología REV™, acortando el tiempo desde la cosecha hasta los productos de cannabis comercializables.

La viabilidad comercial de la tecnología REV™ ha quedado demostrada y está creciendo rápidamente en varios mercados verticales de los sectores alimentario y farmacéutico, incluido el cannabis legal. La estrategia de EnWave consiste en firmar licencias comerciales con regalías con empresas innovadoras y disruptivas en múltiples verticales para el uso de la tecnología REV™. Hasta la fecha, la empresa ha firmado más de treinta licencias. Además de estas licencias, EnWave creó una sociedad de responsabilidad limitada, NutraDried Food Company, LLC, para fabricar, comercializar y vender productos lácteos de aperitivo totalmente naturales en Estados Unidos, incluida 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.

Más información sobre EnWave en www.enwave.net.

EnWave Corporation
Sr. Brent Charleton, CFA
Presidente y Consejero Delegado

Para más información:

Brent Charleton, CFA
Presidente y Director General +1 (778) 378-9616
Correo electrónico: bcharleton@enwave.net

Dan Henriques, CA, CPA,
Director Financiero al +1 (604) 835-5212
Correo electrónico: dhenriques@enwave.net

Para consultas de los medios de comunicación:
Correo electrónico: media@enwave.net

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