Acquisition of Patents from UBCEnWave Completes Acquisition of Patents from The University of British Columbia and Buyout of Royalty Obligations
VANCOUVER, BRITISH COLUMBIA, Apr 01, 2011 (MARKETWIRE via COMTEX News Network) --
EnWave Corporation (TSX VENTURE: ENW)(FRANKFURT: E4U) ("EnWave" or the "Company") today announced that it has completed the acquisition (the "Acquisition") of all patents and know-how that it previously licensed from The University of British Columbia ("UBC") for Radiant Energy Vacuum ("REV") dehydration technology (the "Technology").
The Acquisition considerably expands EnWave's intellectual property portfolio in the field of vacuum microwave dehydration technology. In addition, EnWave no longer has any royalty or other financial obligations to UBC for the Technology.
As consideration for the Technology, EnWave has paid UBC and certain inventors who created the Technology, an aggregate of CDN$3,087,500 in cash and 1,206,500 common shares of EnWave. The amount of cash that is paid to UBC is subject to adjustment based upon share price fluctuations occurring prior to the period ending 30 days after the end of the standard four-month hold period for the shares, such adjustment not to exceed CDN$750,000.
"The closing of this agreement eliminates any future payment obligations to UBC including 20% of any potential royalty revenue," said John McNicol, President and Co-CEO of EnWave. "EnWave is strategically positioned to deliver maximum shareholder value as we build towards future commercialization and royalty agreements."
The securities issued by EnWave in connection with this Acquisition are subject to a 4-month "hold period" as prescribed by the TSX Venture Exchange and applicable Canadian securities laws.