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Dehydration technology expert EnWave Corp (FSE:E4U/TSX-V:ENW) has signed a royalty-bearing commercial license agreement with a second large U.S. cannabis multi-state operator.

At this stage it cannot be disclosed, but EnWave confirmed that it is one of the largest North American cannabis producers.

This license grants the cannabis firm the rights to use EnWave’s REV technology for the rapid and gentle processing of material amounts of premium cannabis.

The cannabis firm is also purchasing a large-scale 120kW Radiant Energy Vacuum machine for use at its existing cultivation facility. The 120kW REV machine is anticipated to be commissioned before the end of the 2021 calendar year.

Extensive testing of REV technology ahead of deal

Prior to committing to using REV technology, the unnamed cannabis producer conducted extensive tests to confirm the advantages of using REV versus incumbent drying methods. The tests used REV as a method for drying for multiple strains, and included several controlled benchmark studies to confirm the improved retention of terpenes and cannabinoids.

EnWave said the terpene and cannabinoid levels of the REV-dried samples were clearly superior to the conventional room/rack dried flower. Further, the smoke experience of REV™-dried cannabis when compared to existing product was undiscernible.

The cannabis company’s testing employed EnWave’s Terpene Max drying protocol, which offers a fast, gentle drying method that removes moisture homogenously from cannabis at controlled, low temperatures, which are below the point where decarboxylation occurs. When compared to other drying methods, REV protocols can be customized to improve terpene retention while preserving equivalent or higher cannabinoids.

Superior drying of cannabis flowers

Typically, cannabis flowers dried using the Terpene Max program yield greater than 10% more retained terpenes than room/rack dried flower. Bioburden is also materially reduced when using select REV protocols. Drying times are reduced from multiple days to less than two hours using REV technology.

A single 120kW REV machine will process in excess of 200lbs of wet cannabis biomass per hour, yielding approximately 45lbs of dried finished product. That translates into over 200,000lbs of dried cannabis produced per year. REV machinery is manufactured for GACP compliance and GMP upon request.

EnWave is already the recognised leader in the development and deployment of this technology, but has been flying under the radar of many investors outside Canada.

The company essentially has two divisions – EnWave Corporation itself manufactures and sells or licenses its technology globally using its dehydration machines, which come in varying levels of scale. It also has a second division, NutraDried Food Company, which manufactures, markets and sells all natural dairy snack products in the US.

We are also very interested in the company’s work in the pharmaceuticals sector. Here, it has the potential to dry vaccines, allowing them to be shipped more cheaply and efficiently. It could also mean that vaccines may be transported without the need for cold storage.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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