Canada-based EnWave has inked royalty-bearing commercial license and equipment service agreement with a North American enzyme producer.
Under the terms of the equipment agreement, the company will supply two commercial powderREV machines for the production of several dehydrated enzymes used for food related applications.
In addition, the agreement provides the licensee with an option to license powderREV for the production of an additional enzyme protein category to support other business development opportunities being developed by its global affiliates.
The first machine is scheduled for delivery in September 2013, while the second machine is expected to be delivered in the summer of 2014.
The licensee will be given an option to license powderREV for the production of an additional enzyme protein category, under the Licensing Agreement.
EnWave noted that the company will pay for the capital cost of the equipment and receive a royalty payment for each kg of enzyme dehydrated in the process with a targeted annual return of between 30% and 50% on capital invested, subject to overall capacity utilization.
Before the large scale commercial production by the machinery begins, a start-up approval process will be conducted after the initial installation in order to confirm acceptance by the Licensee's end customers.
EnWave chairman and co-ceo Tim Durance said that the commercial license offers a new high vale market for the company.
"We continue to gain commercial traction for our game-changing technology and believe we have the opportunity to secure additional licenses later in 2013 in other new product areas," added Durance.
EnWave is a Vancouver-based industrial technology company developing commercial applications for its proprietary Radiant Energy Vacuum (REV) dehydration technology.
