FEB 28TH 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 first quarter ended December 31, 2018.

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.

Principales datos financieros del primer trimestre (expresados en miles de euros):

• Reported the highest quarterly revenue ever for the Company in Q1 2019 of $7,806 compared to $4,519 for Q1 of 2018, an increase of $3,287. Royalty revenues for Q1 2019 increased to $251, compared with $203 for Q1 of 2018. Revenue growth was driven by increased sales and distribution of the Company’s Moon Cheese^®
• Achieved gross profit of $3,037 for Q1 2019 compared to $1,426 for Q1 2018, an increase of $1,611 or 113%. Gross margin as a percentage of revenue was 39% for Q1 2019 compared to 31% for Q1 2018.
• Continued to strengthen the cash flow profile with Adjusted EBITDA^(*) of $1,163 for Q1 2019 compared to $315 for Q1 2018, an increase of $848. The growth in positive EBITDA represents the Company’s continued ability to generate cash from its operations.
• Reduced the consolidated net loss for the period after taxes to $15 for Q1 2019 compared to a net loss of $397 for Q1 2018, an improvement of $382 year-over-year.
• Invested in selling and marketing with S&M expenses of $976 for Q1 2019 compared to $590 for Q1 2018, an increase of $386. S&M expenses increased as part of the strategy to invest in marketing for Moon Cheese^® as well as selling activities that promote REV^TM technology across the food and cannabis sectors.
• Increased G&A and R&D expenses to $998 and $341 for Q1 2019, respectively, compared to $592 and $272 in Q1 2018. The Company added an experienced, full-time CEO for NutraDried to drive growth in the subsidiary business, and invested strategically in intellectual property to support our royalty licensing business model.

Significant Accomplishments:

• Entered into a royalty-bearing commercial sub-license agreement with The Green Organic Dutchman (“TGOD”) and Tilray, Inc. (“Tilray”) granting TGOD non-exclusive rights to use EnWave’s technology for processing legalized cannabis in Canada. Received a purchase order from TGOD for a 60kW REV^TM machine and robotic tray handling system.
• Received a purchase order from Milne Microdried Inc. (“Milne”) for a 120kW REV^TM processing line. The purchase order represents Milne’s third 120kW REV^TM machine and significantly increases Milne’s total royalty-bearing processing capacity.
• Signed a royalty-bearing commercial license agreement with Royal FrieslandCampina N.V. (“Friesland Campina”), one of Europe’s largest dairy companies. Friesland Campina will deploy REV^TM technology to develop new products that fit the evolving consumer needs and taste preferences. Friesland Campina purchased a 10kW REV^TM unit to initiate production.
• Received a purchase order from Bare Foods Co. (“Bare Foods”), a leading American snack food company recently acquired by PepsiCo, for its third 10kW REV^TM machine to expand commercial production of healthy fruit snack products.
• Announced the commercial launch of Bonduelle Group’s (“Bonduelle”) InFlavor^® dehydrofrozen vegetable product into the retail and food service channels. The Company extended Bonduelle’s exclusive rights to EnWave’s technology for dehydrofrozen vegetable products until September 30, 2019 in exchange for a milestone payment. Bonduelle must purchase a 400kW REV^TM machine before September 30, 2019 in order to extend the term of its exclusive rights.
• Signed a royalty bearing commercial sub-license agreement with Your Wasabi Farms (“YWF”) and Tilray granting YWF the non-exclusive rights to use EnWave’s technology to process cannabis plant material and industrial hemp.
• Ended a commercial license agreement with Agropur Dairy Co-operative (“Agropur”). Agropur failed to purchase the large-scale REV^TM machine that was required in order to extend its agreement with the Company.
• Installed the first scaled-up Good Manufacturing Practices (“cGMP”) freezeREV^® machine for Merck and passed site acceptance testing. The machine will be used by Merck for potential development of freezeREV^® technology as a continuous dehydration alternative to lyophilization.
• Expanded sales and distribution of Moon Cheese^® with additional product rotations in a number of Costco divisions.
• Doubled the Company’s production capacity of Moon Cheese^® through the installation of a second 100kW nutraREV^® machine and a 10kW REV^TM The expansion was facilitates continued sales growth of Moon Cheese® and positions for future projected demand in the consumer marketplace.

Appointment of Mr. Stephen Sanford to the Board of Directors:

The Company is pleased to announce that Mr. Stephen Sanford has been appointed to the Board of Directors as a new independent director. The addition of a highly experienced legal executive will further strengthen the diverse skillset of the Company’s Board of Directors.

Mr. Sanford is a seasoned legal professional with over 30 years of experience as an executive for a Fortune 500 company. He is the Senior Vice President and Managing General Counsel at Fluor Corporation (“Fluor”), a global engineering and construction company. Mr. Sanford has significant experience structuring major commercial transactions in a variety of legal systems around the world. In his role at Fluor, Mr. Sanford manages a team of legal professionals with a global footprint that addresses intellectual property matters, taxation, insurance and risk management matters. During his tenure at Fluor, Mr. Sanford has provided legal expertise and leadership during the structuring of billions of dollars in transactions.

Mr. Sanford obtained both his Bachelor’s Degree and Law Degree from Dalhousie University and holds an MBA from the University of Calgary.

^(*) 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 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 December 31, 2018 and annual MD&A for the year ended September 30, 2018.

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;
2. powderREV®, que se utiliza para la deshidratación a granel de cultivos alimentarios, probióticos y productos bioquímicos finos, como enzimas, por debajo del punto de congelación, y
3. quantaREV®, que se utiliza para la deshidratación a granel de cultivos alimentarios, probióticos y productos bioquímicos finos, como enzimas, por debajo del punto de congelación.
Se está desarrollando una plataforma adicional, freezeREV®, como nuevo método para estabilizar y deshidratar productos biofarmacéuticos como vacunas y anticuerpos. Más información sobre EnWave en 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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