MAY 29TH 2019, 06:00AM

EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) today reported the Company’s consolidated interim financial results for the second quarter ended March 31, 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 record quarterly revenue for the Company in Q2 2019 of $8,773, an increase of $4,601 when compared to $4,172 for Q2 of 2018. Revenue growth was driven by increased sales and distribution of the Company’s Moon Cheese^® product as well as an increase in REV™ equipment sales into the cannabis sector.
• More than doubled gross profit, improving to $3,120 for Q2 2019 compared to $1,295 for Q2 2018, an increase of $1,825 or 141%. Gross margin as a percentage of revenue was 36% for Q2 2019 compared to 31% for Q2 2018.
• Increased cash profitability with Adjusted EBITDA^(*) of $1,002 for Q2 2019 compared to $4 for Q2 2018, an increase of $998. Q2 YTD Adjusted EBITDA^(*) for the Company was $2,165, compared to $319 for Q2 YTD 2018. 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 $224 for Q2 2019 compared to a net loss of $519 for Q2 2018, an improvement of $295. With sales of Moon Cheese^® and REV™ equipment increasing the Company is making robust progress towards consolidated profitability.
• Increased G&A expenses to $1,049 for Q2 2019 compared to $606 for Q2 2018, an increase of $443. The Company added several talented new personnel to the team, including a new CEO for NutraDried, as well as invested in a scalable infrastructure to facilitate growth in machine sales and Moon Cheese^®.
• Invested in top-line growth with S&M expenses of $1,084 for Q2 2019 compared to $683 for Q2 2018, an increase of $401. S&M expenses increased as part of the Company’s strategy to invest in the Moon Cheese^® brand as well as more traditional selling activity to promote REV™ technology across the food and cannabis sectors.
• Reported cash on the balance sheet of $12,200 at the end of the second quarter and subsequently completed a strategic investment with Aurora Cannabis Inc. (“Aurora”) in the Company for gross proceeds of $10,087. The Company is positioned with a debt-free balance sheet and cash in excess of $20 million paired with a positive cash flow profile.

Significant Accomplishments:

• 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™ machines and a 10kW machine for installation in Canada.
• Entered into a royalty-bearing commercial license agreement with Aurora granting Aurora exclusive rights, with the rights to grant sub-licenses, for processing cannabis in the European Union (excluding Portugal). Aurora must purchase a 120kW REV™ machine for installation in the European Union before June 25, 2019 to retain the exclusive rights.
• Partnered with Aurora to develop new innovations and intellectual property related to REV™ and its applications in the cannabis sector by signing an intellectual property agreement and initiating new joint development projects.
• Entered into a royalty-bearing commercial sub-license agreement with The Green Organic Dutchman (“TGOD”) granting TGOD non-exclusive rights to use EnWave’s technology for processing legalized cannabis in Canada. TGOD purchased four large-scale REV™ machines for installation in Canada including a 60kW REV™ machine and three 120kW REV™ machines, all with automated robotic tray handling systems.
• Shipped the first 60kW machine to Tilray Inc. (“Tilray”) and began the installation and commissioning processes on the first large-scale continuous cannabis processing line.
• Signed a royalty-bearing commercial license agreement with Calbee Inc. (“Calbee”) and received a purchase order for a 10kW machine. Calbee, a major Japanese snacking company, plans to conduct intense product development in 2019 and to launch several new products through market testing efforts in 2020.
• Converted Fresh Business Consulting S.L. (“Fresh Business) from a technology evaluation agreement into a royalty-bearing commercial license agreement and granted Fresh Business exclusive rights to produce a variety of premium food products in Peru. Fresh Business initially purchased a 10kW machine and must commit to purchasing a 100kW or larger machine before July 31, 2019 to retain exclusivity in Peru.
• Advanced the development of nutrient rich field rations with the U.S. Army and announced the purchase of a second small-scale REV™ machine by the U.S. Army as part of the ongoing project. The Company is collaborating with the U.S. Army and its approved supplier network as part of the strategy to commercialize REV™ for high quality field rations with superior taste and nutrients.
• 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™ technology to develop new products that fit evolving consumer needs and taste preferences. Friesland Campina purchased a 10kW REV™ unit to initiate production.
• Selected as a 2019 Venture 50™ company in the Clean Technology & Life Sciences category.
• Appointed Mr. Stephen Sanford as a new independent member on the Company’s Board of Directors. Mr. Sanford is Managing General Counsel at Fluor Corporation and has significant experience structuring major commercial transactions in a variety of legal frameworks on a global basis.
• Continued to expand the sales and distribution of Moon Cheese^® throughout the United States in the club and retail grocery channels. NutraDried hired Mr. Joe Spinazola as the new Senior Vice President of Sales in April 2019 to further advance this effort and Mr. Spinazola will work closely with NutraDried’s CEO to grow distribution of its all-natural snack product, Moon Cheese^®, and to launch new products and flavours.

Investor Relations Agreement:

The Company retained Mr. Jochen Staiger of Swiss Resource Capital (“SRC”) to provide investor relations services for the Company in the European capital markets.  SRC will broaden awareness of EnWave’s investment case in Europe with retail and institutional investors. SRC will be remunerated CHF 5,000 per month (CAD $6,650) for the twelve-month term of the contract starting on June 1, 2019. The Company previously announced on September 11, 2018 that 50,000 incentive stock options were granted to Mr. Staiger; no additional incentive stock options have been granted as part of SRC’s compensation.

^(*) 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 March 31, 2019 and annual MD&A for the year ended September 30, 2018.

À propos d'EnWave

EnWave Corporation, une société de technologie avancée basée à Vancouver, a développé Radiant Energy Vacuum ("REV™") - une méthode innovante et exclusive pour la déshydratation précise des matières organiques. La viabilité commerciale de la technologie REV™ a été démontrée et connaît une croissance rapide sur plusieurs marchés verticaux dans les secteurs de l'alimentation, du cannabis légal et des produits pharmaceutiques. La stratégie d'EnWave consiste à signer des licences commerciales assorties de redevances avec des leaders de l'industrie dans de multiples secteurs verticaux pour l'utilisation de la technologie REV™. La société a signé plus de vingt licences génératrices de redevances à ce jour, ouvrant huit secteurs de marché distincts pour la commercialisation de produits nouveaux et innovants. En plus de ces licences, EnWave a formé une société à responsabilité limitée, NutraDried LLP, pour développer, fabriquer, commercialiser et vendre des produits de grignotage au fromage entièrement naturels aux États-Unis sous la marque Moon Cheese®.

EnWave a présenté REV™ comme la nouvelle norme de déshydratation dans les secteurs de l'alimentation et des matériaux biologiques : plus rapide et moins cher que la lyophilisation, avec une meilleure qualité de produit final que le séchage à l'air ou le séchage par pulvérisation. EnWave possède actuellement trois plateformes commerciales REV™ :
1. nutraREV®qui est utilisé dans l'industrie alimentaire pour sécher les produits alimentaires rapidement et à faible coût, tout en maintenant des niveaux élevés de nutrition, de goût, de texture et de couleur ;
2. powderREV®qui est utilisé pour la déshydratation en vrac des cultures alimentaires, des probiotiques et des produits biochimiques fins tels que les enzymes en dessous du point de congélation, et
3. quantaREV®qui est utilisé pour le séchage à basse température en continu et en grand volume.
Une plateforme supplémentaire, freezeREV®, est en cours de développement comme nouvelle méthode pour stabiliser et déshydrater les produits biopharmaceutiques tels que les vaccins et les anticorps. De plus amples informations sur EnWave sont disponibles sur le site www.enwave.net.

EnWave Corporation
Dr. Tim Durance
Président-directeur général

Pour de plus amples informations :
John Budreski, président exécutif, +1 (416) 930-0914
E-mail : jbudreski@enwave.net

Brent Charleton, Senior Vice President, Sales and Business Development at +1 (778) 378-9616
E-mail : bcharleton@enwave.net

Deborah Honig, Corporate Development, Adelaide Capital Markets au + 1 (647) 203-8793
E-mail : dhonig@enwave.net

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