Update from John McNicolNext month marks the start of my fifth year with EnWave, and I have to say that this company just keeps getting stronger and stronger, supported by a dynamic technology, an innovative, driven team, top tier global collaboration partners and a healthy, growing capital base.
At the beginning of 2007, we made the strategic decision to position our developing Radiant Energy Vacuum (REV) dehydration technology as a competitor to freeze drying in the global market, and in just four short years we have achieved an impressive list of accomplishments.
Some of the highlights include:
- four multinational collaborations signed with Nestlé AS, Danisco SA, Grupo Bimbo SA and Grimmway Farms, each global leaders in their fields, representing unique and diverse applications using REV technology
- developed, sold and licensed our first commercial-scale nutraREV™ machine, and introduced the “nutraDried™” brand to the market
- developed a pilot-scale nutraREV™ machine with a pilot plant built to demonstrate this technology to collaborators and potential customers
- developed the powderREV™ batch and continuous pilot-scale prototypes for bulk powders
- developed the bioREV™ and freezeREV™ single-vial prototypes for pharmaceuticals, along with a freezeREV™ multi-vial prototype
- developed the quantaREV™ high-volume prototype
- accumulated an extensive database of positive test data for each machine on a wide range of food and biomaterials
- 7 new patents issued, filed or pending to support a solid intellectual property foundation
- acquired the U.S. patents & know-how for Hans Binder’s complimentary MIVAP™ technology, with exclusive rights to sell and license MIVAP™ in Canada and the US
- signed partnerships with third-party machine builders in Canada & Germany
- raised over $26M in equity & government grants
- research coverage initiated by Clarus Securities and Laurentian Bank Securities
We now have five separate dehydration platforms, 22 hard-working employees and a supportive cast of contractors, four facilities, and over $100M in market capitalization. Following on from our announcement of quantaREV™ earlier this month, we have also expanded our corporate mission statement to include a wider industry focus than just the freeze drying market:
“EnWave’s mission is to establish REV as a new global dehydration standard: faster and cheaper than freeze drying, with better quality than air drying or spray drying."
For the many new investors who have joined us recently, the following table provides an overview of EnWave’s five platforms, what they do, and the markets they serve.
EnWave's Dehydration Technology Platforms
Clear Commercialization Pathway
Over the past year, we have focused our business development efforts on the growing list of multinational companies interested in developing applications for REV technology. The chart below outlines our pipeline of development projects, including key partners and the expected path to commercialization for our five REV technologies.
2011 Business Focus
In 2011, EnWave’s team will continue to build our list of multinational collaborations and partnerships, while successfully completing testing programs and the negotiation of our first multinational commercial order and long-term royalty license.
In order to achieve these two goals, we have set out five main targets for 2011 that I will be discussing in more detail at our upcoming AGM on February 22:
1) Deliver the powderREV™ pilot-scale machine to Danisco’s pilot plant in the U.S., and complete testing and a licensing agreement to obtain the first commercial machine order for this technology.
2) Sign collaborations with at least two new Tier 1 multinational companies.
3) Support testing and product development efforts under our current collaboration agreements, and explore possibilities for expansion into other divisions for new REV applications.
4) Design and develop the pilot-scale quantaREV™ technology for testing by both current and new partners at our pilot plant.
5) Develop the freezeREV™ multi-vial pilot scale technology and expand the testing program at the Saskatchewan Research Council.
I encourage you to track our progress in these areas over the coming year.
Corporate Activities
On January 19th, we received cash from 100% of the warrants from last year’s private placement, generating an additional $2.2 million in cash for the Company. In the same week, we announced our first ever bought deal from a syndicate of investment banks that included Canaccord Genuity, Laurentian Bank and Clarus Securities. Filled with participation from a number of institutional investors in Europe and Canada, this financing is a major sign of approval from the global investment community that is expected to deliver over $10 million in cash to EnWave by the time the financing closes on February 9th.
This financing will leave us with over $16 million in cash with no debt and a very strong balance sheet. As always, regardless of the amount of cash on hand, we will continue to run this company in a very cost-conscious manner in order to maximize the funds available to core R&D and marketing, and to allow us to deliver on our commercialization milestones regardless of the financial climate.
Throughout the coming year, EnWave will seek to deliver on our list of planned milestones, and we intend to keep up the pressure with the goal of maintaining what BNN recently called our “red hot small cap stock”.
As always, please feel free to contact myself at john.mcnicol@enwave.net or Jennifer Thompson, V.P. of Corporate Development & Investor Relations at jthompson@enwave.net with any questions or thoughts about the Company.
Kind regards,
John McNicol
President & Co-CEO
EnWave Corporation