Vancouver-based dehydration company EnWave Corporation (TSX-V: ENW; FSE: E4U) is expanding beyond dried cannabis and non-marijuana snacks in Canada with a possible international venture into dehydrated vegetables.
The potential deal was announced as the company inked a technology evaluation and license option agreement with Simplot Australia, a food brand headquartered out of Mentone, Australia.
Simplot operates through brands such as Birds Eye for frozen vegetables, John West for canned seafood, Leggos and Five Brothers for jarred pasta sauces, and Lean Cuisine for frozen ready-to-eat meals.
Under the terms of the evaluation, Simplot will utilize EnWave’s patented Radiant Energy Vacuum (REV) dehydration process, with the option available to exclusively license the process for any of its subsidiary brands.
Currently, EnWave utilizes three main methods of dehydration — nutraREV for maintaining texture of dried food, quantaREV for continuous drying for organic material, powderREV for dehydrating powders and probiotics and cultures,
The company is also actively developing the freezeREV system for dehydrating antibodies and vaccines for use in the medical industry.
In related news, EnWave signed a commercial license agreement with cannabis company Tilray (NASDAQ: TLRY) earlier this year to process marijuana products in both Portugal and Canada.
The two licensed REV machines supplied by EnWave are expected to be operational and producing usable cannabis product in early 2019.
Quicker drying of fresh cannabis to produce dried flower product for sale is only one prong in the constant battle against product shortages since recreational cannabis was legalized in October of 2018 in Canada.
Order backlogs, long lines, and bare shelves have been a constant issue in the two months since legalization, with companies across the nation ramping up production efforts to meet their agreed-upon shipment obligations with dispensaries in each province.
Other methods of overcoming that hurdle have included large-scale, multi-phase construction projects for new production facilities, acquiring stakes in companies with existing grow operations, and even utilizing converted storage containers as portable production labs.
About Author
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.