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EnWave (TSXV:ENW) licenses Blackhawk Growth (CSE:BLR) subsidiary

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TSXV:ENW
23 November 2020 11:01 (EDT)

Dehydration tech company EnWave (ENW) has signed a royalty-bearing commercial license and equipment purchase agreement with NuWave Foods.

NuWave is a 51 per cent-owned subsidiary of public investment fund, Blackhawk Growth (BLR), which acquired the majority interest in March 2020. Based in Edmonton, Alberta, NuWave is a commercial manufacturer of kitchen and baked goods, currently focused on developing and commercialising shelf-stable baked products.

Since May 2020, NuWave has been evaluating EnWave’s Radiant Energy Vacuum (REV) dehydration technology for its potential use in this goal. The REV technology can slow the retrogradation or recrystallisation of starch molecules that contributes to the staling process that, thereby extending product shelf-life. 

Using this technology, NuWave has already developed several shelf-stable baked goods. The business intends to commercialise these products under the royalty-bearing commercial license which it was granted by EnWave.

Under the equipment purchase agreement, NuWave has paid EnWave a non-refundable deposit, for the purchase of two REV machines. One is a small 10 kilowatt machine, while the other is a large-scale 60 kilowatt REV machine. 

NuWave must make a second milestone payment to EnWave within 90 days, in order to secure certain exclusivity rights. If the milestone payment is made, NuWave will have the exclusive right to use REV technology to process shelf-stable donuts and fritters in Canada and the United States. 

In order to retain this exclusivity, NuWave must buy another large-scale REV machine within 18 months of commissioning the first large-scale machine.

EnWave is down 0.93 per cent and is trading for C$1.06 per share, as of 10:01am EST.

Blackhawk Growth is down 33.33 per cent and is trading for 1 cent per share, as of 10:00am EST.

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