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EnWave (TSXV:ENW) technology expands into Mexican market

Technology
TSXV:ENW
08 July 2020 13:59 (EDT)

Technology company, EnWave (ENW) has signed a commercial license agreement with Mexican food company, Pick-One SA de CV.

The non-exclusive, royalty-bearing license includes an equipment purchase agreement, relating to one of EnWave’s REV machines. 

Since late 2019, Pick-One has been trialling a 10-kilowatt Radiant Energy Vacuum machine at its facility in Chihuahua, Mexico. This trial came under a Technology Evaluation and License Option Agreement and was for product development purposes. 

Throughout the evaluation period, Pick-One used the REV machine to develop shelf-stable snack prototypes. As a result of the trial’s success, the food company has decided to purchase the machine outright, for commercial applications.

Under this new license agreement, Pick-One has bought the machine, and will start using it for commercial-scale production. Specifically, the company intends to use it for producing dried cheese and fruit snacks for Mexico’s retail grocery market.

To date, EnWave has signed 38 royalty-bearing commercial licenses with food, cannabis, and pharmaceutical companies worldwide.

However, this is the first license which EnWave has signed with a Mexican partner, representing the company’s growth into an untapped market. 

As a country with a rich agricultural history, Mexico represents a new and exciting potential consumer base for EnWave.

Under the commercial license agreement, Pick-One will make undisclosed quarterly royalty payments to EnWave. The payments will be calculated as a percentage of the revenue which Pick-One generates through its REV-based commercial production.

EnWave (ENW) is up 3.45 per cent and is trading at C$0.90 per share at 1:44pm EDT.

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