VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/03/13 -- EnWave Corporation (TSX VENTURE: ENW)(FRANKFURT: E4U) ("EnWave", or the "Company") announced today that it has signed a Collaboration Agreement (the "Agreement") with NDH Retail B.V. ("NDH") to develop a number of pure and healthy cheese snack products for potential commercial distribution in several European nations including the Netherlands, Belgium, Russia and the Ukraine ("the Territory"). NDH's product interests are specifically focused on wholesome, 100% natural dried cheese snacks, as well as cheese croutons that offer fantastic flavor, contain no carbohydrates, are gluten-free and offer high levels of protein and calcium.
NDH is a company closely affiliated with Mr. Hugh Wiebe, a director of EnWave and former Chairman of Brookside Foods. Mr. Wiebe and his partners have extensive business interests and operations throughout Europe and after a successful initial market assessment, decided to engage NDH with EnWave to potentially produce and distribute natural cheese snacks throughout the Territory. NDH has entered into the collaboration Agreement with EnWave to secure an option to license REV technology for these applications while completing a more comprehensive market evaluation.
Under the terms of the Agreement, NDH will lease a test-scale nutraREV® machine for their European headquarters beginning in July 2013, to produce local cheese samples for a broader market test over the next few months under their own unique brand. If the broader market testing is successful, a first commercial nutraREV® machine order is expected in the fourth quarter of 2013 for installation at a plant in Maastricht, Netherlands, with an expected start-up by mid-2014. If established, this plant will initially produce commercial product for the Belgium and Dutch markets with exportation also expected to Russia and the Ukraine until a market is developed to support a second plant in this region. NDH has existing distribution relationships with numerous companies including Albert Heijn, one of Netherland's largest supermarket chains as well as some of the largest retail food distributors in Russia and the Ukraine.
Under the Agreement, NDH has secured exclusive rights for the aforementioned regions of Belgium, the Netherlands, Russia and the Ukraine until the end of 2013 to enable NDH to complete the initial plant purchase, and longer term exclusivity for all four territories should the initial plant be purchased this year. All other terms of the Agreement are confidential.
EnWave is not planning to participate as a direct investor in this project or any future commercialization efforts by NDH, rather the Company plans to sell REV machinery under license with royalty terms similar to the recent commercial license signed with NutraDried LLP, including a 5% royalty on revenues and an agreement to place EnWave's nutraDRIED trademark on all retail packaging. The collaboration with NDH represents the fourth market opportunity that EnWave is developing with its current customer base for healthy, all-natural dried cheese applications.
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