VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/27/13 -- EnWave Corporation (TSX VENTURE: ENW)(FRANKFURT: E4U) ("EnWave" or "the Company") is pleased to announce that, through a newly created wholly-owned subsidiary in the United States called EnWave USA Corporation, it entered today into a 70-30 Partnership Agreement with Lucid Capital Management Ltd. ("Lucid') to form NutraDried LLP ("the LLP"), a limited liability partnership established in the United States of America. EnWave and Lucid have agreed to establish this LLP to develop, manufacture, market and sell 100% all-natural cheese snack products under the nutraDRIED trademark. Together, EnWave and Lucid have committed up to a total of CAD$2,000,000 to the LLP for the purposes of developing a market, infrastructure and nutraREV® capacity for producing healthy cheese snack products in the State of Washington for sale across the U.S. market.
In April 2013 the LLP is expected to begin producing cheese snack products for initial market introductions and early stage sales, utilizing the Company's smaller scale commercial nutraREV® equipment. In anticipation of a successful market launch, EnWave has initiated building a larger scale nutraREV® machine to be available for delivery in Q4 2013; either to the Partnership or to another near term commercial opportunity expected to be secured during the year.
EnWave has also entered into a royalty-bearing Commercial License ("the License Agreement") with NutraDried LLP. The License Agreement grants the LLP the right to use Radiant Energy Vacuum ("REV") technology for the production of natural cheese snack products in the United States of America. Furthermore, the License Agreement provides the LLP with the right to market and sell such products on a global basis. The LLP will pay EnWave a revenue-based royalty of 5%, with a provision of up to 10% in certain scenarios.
NutraDried LLP also has the option to extend the License Agreement to include Belgium and the Netherlands, provided a second commercial nutraREV® machine is purchased for the European region within 12 months. Lucid ownership and management have extensive experience and retail distribution relationships in the U.S and European markets with access to existing manufacturing facilities in the Netherlands where the second plant would be established. Under the agreement Lucid also retains a share purchase option to increase its equity ownership in the LLP from 30% to 49% through the end of 2014.
A Trademark Agreement has also been entered into with the LLP that outlines the required use of the nutraDRIED trademark and logo. Pursuant to the usage requirements, the LLP must include the nutraDRIED logo on every package sold, regardless of size. This requirement is a positive step towards building the nutraDRIED brand and associating it with a new, healthy, flavourful, all-natural snack product. EnWave's goal is to establish nutraDRIED as a symbolic term that indicates high levels of nutrients, color and flavour in all-natural products.
Strategic Partner with Proven Success
Lucid Capital Management Ltd. is part of the Wiebco Group of Companies controlled by the parent company Wiebco Investments Ltd., which is a private holding and management company controlled by J. Hugh Wiebe and his family. Mr. Wiebe has been a Director of EnWave Corporation since December 2010.
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