Key Takeaways
- EnWave Corp has signed a technology evaluation and license option agreement with a major multinational food company.
- The agreement focuses on evaluating EnWave’s REV technology for improved food preservation and manufacturing efficiency.
- EnWave reported steady royalty revenues and expects growth due to increasing partner activities and distributions.
Partnership with Major Food Brand
EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) has initiated a technology evaluation and license option agreement with one of the largest multinational food companies globally. This partner, a leader in branded consumer foods, generates over US$20 billion in annual revenues and operates across various sectors, including retail grocery, snack foods, frozen meals, and cereals, reaching consumers in more than 100 countries.
The agreement allows the partner to assess EnWave’s REV technology at a commercial scale across multiple food categories. Should the evaluation yield positive results, the partner will have the option to negotiate royalty-bearing licenses for the commercial use of REV technology.
The focus of the evaluation will be on REV’s capability to maintain the flavor, texture, color, and nutritional quality of food while significantly reducing drying times compared to traditional dehydration methods. Additionally, the partner will explore how REV can enhance product quality and manufacturing efficiency across its major product lines.
Evaluation activities are slated to begin within the next few months at the partner’s facilities, as well as at EnWave’s innovation center located in Vancouver.
In conjunction with the partnership announcement, EnWave disclosed its financial performance for the second quarter, emphasizing an increase in partner momentum and broader distribution efforts as indicators of anticipated royalty revenue growth. The company’s total royalties for the quarter reached C$465,000, a modest decline of 2% year-over-year.
Despite a decrease in revenue for the three months ending March 31, 2026, which was reported at C$1.16 million, down from C$2.53 million the previous year, EnWave noted that this decline was primarily due to the timing of large-scale REV machine orders. Gross margins improved slightly to 35%, attributed to reduced fabrication costs for machines under contract.
Selling, general, and administrative expenses, including research and development, rose by C$78,000 year-over-year, reflecting investments in expanding the sales team. The adjusted EBITDA loss for the quarter was reported at C$775,000.
Over the first half of the fiscal year, base royalties increased by 4% to C$934,000, and total royalty revenues grew by 5% to C$1.09 million, driven by a growing partner base, improved production volumes, and exclusive agreements.
As a result of this update, EnWave’s shares saw a 13% increase.
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