VANCOUVER, FEBRUARY 26, 2021 6:00AM

EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) is pleased to report the Company’s consolidated interim financial results for the first quarter ended December 31, 2020.

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

第1四半期の主な財務ハイライト（単位：千米ドル）：

• Reported consolidated revenue for Q1 2021 of $7,533 compared to $8,609 for Q1 2020, a decrease of $1,076 or 12%. EnWave Canada had revenue of $2,676 in Q1 2021 compared to $4,555 in Q1 2020. NutraDried had revenue of $4,857 in Q1 2021 compared to $4,054 in Q1 2020.
• Gross margin was 23% for Q1 2021 compared to 37% for Q1 2020. The gross margin compression in Q1 2021 was due to a one-off discount offered by NutraDried on a national Moon Cheese^® promotion at Costco.
• Consolidated net loss after taxes was $1,371 for Q1 2021 compared to a net loss of $1,426 for Q1 2020, an improvement of $55.
• EnWave reported a segment loss of $25 for Q1 2021 compared to a segment loss of $790 for Q1 2020, an improvement of $765. The improvement in EnWave’s segment results is attributed to the cost containment measures implemented in fiscal year 2020 and improved operating leverage with new REV™ machinery orders.
• NutraDried reported a segment loss of $1,346 for Q1 2021 compared to a segment loss of $636 for Q1 2020.
• Adjusted EBITDA^(*) was a loss of $911 for Q1 2021 compared to a loss of $743 for Q1 2020, an increase of $168.
• SG&A expenses (inclusive of R&D expenses) for Q1 2021 were $3,216 compared to $4,236 for Q1 2020, a decrease of $1,020 or 24%. SG&A expenses were lower as a result of a cost containment plan implemented to reduce costs and eliminate non-essential and discretionary expenses while remaining focused on commercialization growth across the business.
• Generated cash from operating activities in Q1 2021 of $4,228 compared to cash used in operating activities in Q1 2020 of $2,796.
• Maintained a strong balance sheet with a working capital surplus of $22,221 and a cash balance of $17,401. Our cash position has notably increased from Q4 2020, giving the Company a robust treasury to further the expansion of the global deployment of REV^TM technology, which includes the build-out of the REVworx^™ toll manufacturing facility and furthering the research and development in using REV^™ for the rapid, gentle drying of cannabis products.

Significant Corporate Accomplishments in Q1 2021:

Significant accomplishments made during Q1 2021 and to the date of this report include:

• Confirmed an order for a 100kW REV™ machine from Patatas Fritas Torres, a royalty partner of the Company producing cheese snack products in Spain. The purchase of the 100kW machine marks the scale-up from a 10kW machine of another global dairy partner for the large-scale production of shelf-stable cheese snacks.
• Secured a purchase order to deliver two 10kW REV™ machines to Natural Nutrition, a royalty partner of the Company in Chile, to increase its royalty-bearing processing capacity for premium dried fruit and vegetable products.
• Secured a purchase order to deliver the second 10kW REV™ machine to the US Army for the development of unique and nutrient stable food ration products for their soldiers.
• Secured a purchase order for a 10kW REV™ machine from Responsible Foods, a royalty partner of the Company producing premium dried snacks using healthy Icelandic ingredients. The purchase of the 10kW machine doubles Responsible Foods’ royalty-bearing manufacturing capacity in Iceland.
• Signed an exclusive royalty bearing license with Nippon Trends Food Service, Inc. (“Nippon Trends”) for the use of EnWave’s dehydration technology for the commercial production of ready-to-eat ramen noodle products. Nippon Trends purchased a 10kW REV™ machine to initiate commercial production in Canada.
• Signed the first royalty-bearing commercial license agreement for cannabis dehydration in the United States with HHC Holdings, LLC d.b.a. GentleDry Technologies. GentleDry Technologies will initiate commercial production with a 10kW REV™
• Advanced the joint development agreement with GEA Lyophil GmbH (“GEA”) for the development and scale-up of GMP-pharma machinery for the global pharmaceutical industry. GEA has purchased a lab-scale REV™ machine for installation at its pilot facility in Hürth, Germany, and plans to utilize the machine to showcase the capabilities of microwave-assisted lyophilization technology to prospective target customers.
• Developed Terpene Max™, a proprietary drying protocol for cannabis that dries cannabis material at temperatures lower than 40 degrees Celsius. The first quantitative analysis performed by an independent testing facility shows that flower dried using Terpene Max™ retained 88% of the terpenes when compared to the fresh flower and when compared to room dried cannabis flower, the Terpene Max™ process yielded 10% more terpenes than the room dried flower.
• Completed the installation of two 100kW REV™ machines for royalty-bearing commercial production in Costa Rica and Peru respectively for the processing of premium shelf-stable fruit and vegetable products.
• Completed the fabrication and shipped two 120kW machines to Aurora Cannabis. EnWave has received full payment for these two machines from Aurora Cannabis.

Business Transformation at NutraDried:

The Company previously announced on February 18, 2021, a restructuring and cost reduction plan implemented at NutraDried, a wholly owned subsidiary of the Company. As part of the restructuring, certain management and production staffing positions were eliminated to realign the cost structure of NutraDried to realize material savings. The reductions to staffing are expected to lower annual personnel costs to the Company by approximately CA $2 million; the Company will incur a severance charge in Q2 2021 of approximately CA $600,000 as part of the restructuring. The total monthly FTE expenses at NutraDried will be reduced by approximately 30% following the organizational changes.

The changes announced are part of a plan to reduce expenses across NutraDried’s operations, regain focus on the core competencies of the business and to return the business to meaningful profitability through the use of REV™ technology.  The objective is to return NutraDried to positive EBITDA and cash flows as quickly as possible while continuing to innovate and launch new REV™ products that align with consumer preferences.

Part of the new strategy will include proactively seeking contract manufacturing opportunities to leverage the installed REV™ capacity. Recently, NutraDried secured a major contract manufacturing opportunity with a leading global snack company to supply REV™-dried cheese. There are several additional private-label and contract manufacturing projects in NutraDried’s pipeline.

電話会議の詳細

Date: March 1, 2021
Time: 7:00am PST / 10:00am EST
Participant Access: 1-877-407-2988 (toll free number)

Webcast Link: https://78449.themediaframe.com/dataconf/productusers/enw/mediaframe/43699/indexl.html

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^(*) 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 interim MD&A for the three months ended December 31, 2020.

エンウェーブについて

バンクーバーを拠点とする先端技術企業、エンウェーブ・コーポレーションは、有機物を正確に脱水する革新的な独自手法であるラジアント・エナジー・バキューム（「REV™」）を開発した。EnWave社はさらに、REV™技術を使って大麻を均一に乾燥・除染する特許取得済みの方法を開発し、収穫から大麻製品が市場に出回るまでの時間を短縮しました。

REV™技術の商業的可能性は実証されており、合法的な大麻を含む食品、医薬品分野の複数の市場垂直方向で急速に成長しています。エンウェーブの戦略は、REV™技術の使用に関して、複数の垂直市場において革新的で破壊的な企業とロイヤリティを伴う商業ライセンスを締結することです。現在までに30件以上のロイヤリティ付きライセンスを締結している。これらのライセンスに加え、エンウェーブは有限責任会社NutraDried Food Company, LLCを設立し、Moon^Cheese®ブランドを含む米国内の天然乳製品スナック製品の製造、マーケティング、販売を行っている。

エンウェーブは、凍結乾燥よりも迅速かつ低コストで、風乾や噴霧乾燥よりも優れた最終製品品質を実現するREV™を、食品および生物材料の分野における新たな脱水標準として導入しました。
1.nutraREV®は、栄養、味、食感、色を高いレベルで維持しながら、食品を迅速かつ低コストで乾燥させるために食品産業で使用されています。
2.quantaREV®は、連続的な大量低温乾燥に使用されています。

エンウェーブの詳細については、www.enwave.net をご覧ください。

エンウェーブ・コーポレーション
ブレント・チャールトン、CFA
社長兼CEO

詳細はこちら：

Brent Charleton, CFA
社長兼 CEO 電話: +1 (778) 378-9616
E-mail:bcharleton@enwave.net

Dan Henriques, CA, CPA,
最高財務責任者 電話: +1 (604) 835-5212
E-mail:dhenriques@enwave.net

メディアからのお問い合わせ：
Eメール：media@enwave.net

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