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Dehydration technology specialist EnWave (TSXV:ENW) is selling a second of its proprietary Radiant Energy Vacuum (REV) machines to an undisclosed cannabis company in Illinois. The company, which operates across multiple US states, has signed a royalty-bearing license agreement, and bought its first machine from EnWave in March last year.

Since adopting REV technology for the drying of premium cannabis, the cannabis firm has been using EnWave’s proprietary Terpene Max drying protocol, which offers a fast, gentle drying method that removes moisture homogenously from cannabis. EnWave’s Terpene Max program allows for precise temperature control of the cannabis material at low temperatures below the point of decarboxylation.

When compared to other drying methods, REV protocols can be customised to improve terpene retention while preserving equivalent or higher cannabinoids.

Not just for cannabis drying

EnWave’s technology can be used not only for cannabis drying but also for foodstuffs and is being road tested in the pharmaceutical sector as well. It has developed patented methods for uniformly drying and decontaminating cannabis through the use of REV technology, shortening the time from harvest to marketable cannabis products.

Cannabis flowers dried using the Terpene Max program yield on average 10% more retained terpenes than room or rack dried flower. Bioburden is also materially reduced when using REV drying protocols. REV technology allows cannabis produces to reduce drying times from multiple days to less than two hours, while maintaining the quality of the flower.

The cannabis firm has been producing REV-dried premium cannabis flower on its first 120kW REV system since September 2021. With the purchase of this second 120kW REV system, it will double its royalty-bearing drying capacity of premium, smokable cannabis product.

Royalty to be based on finished weight of dried cannabis

Under the terms of the license, the company will pay EnWave a royalty based on the finished weight of dried cannabis processed using the installed REV systems. A single 120kW REV machine can process approximately 200lbs of wet cannabis biomass per hour, yielding approximately 45lbs of the dried finished product. That translates to over 200,000 lbs of dried cannabis produced per year. EnWave’s REV equipment can be manufactured for GACP compliance and GMP upon request.

EnWave’s strategy is to sign royalty-bearing commercial licenses with innovative, disruptive companies in multiple verticals for the use of REV technology. The company has signed over 45 licenses to date spanning twenty countries and five continents.

EnWave currently offers two distinct commercial REV platforms: nutraREV which is a drum-based system that dehydrates organic materials quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour and quantaREV which is a tray-based system used for continuous, high-volume low-temperature drying.

EnWave has continued to customise its REV machines to make it easier for them to slot into companies’ existing production processes. They come in various sizes depending on the requirements of the manufacturer. EnWave told The Armchair Trader that many clients like to test the technology with smaller machines before upgrading to larger devices. The company continues to serve dozens of clients across the planet.

Related

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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