Aurora Cannabis exercises license option with EnWave for South America

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EnWave Corporation (TSX-V:ENW | FSE:E4U) reports today that, following its April 26, 2019 joint news release with Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB), a global leader in the cannabis industry, that Aurora has exercised its option and that the companies signed an exclusive, royalty-bearing commercial license agreement with sub-licensing rights for the use by Aurora of EnWave’s proprietary Radiant Energy Vacuum dehydration technology for the drying of cannabis in South America (excluding Peru). Aurora will hold the exclusive master license for the drying of cannabis using REV™ in the South American license territory and will work with EnWave to pursue additional sub-licensing opportunities. Aurora will receive an undisclosed share of royalties derived from any cannabis product dried with REV™ technology by sub-licensees in the South American license territory. This is the third such agreement signed by Aurora and EnWave.

Equipment Purchase Agreement Signed

Aurora has also signed an equipment purchase agreement for a large-scale 60kW commercial REV™ machine for its operations in South America. The REV™ dehydration machines purchased will be used to increase throughput of THC and CBD extraction for the manufacture of derivative cannabis products.

On April 26, 2019, EnWave and Aurora announced that the companies had entered into a royalty-bearing commercial license agreement with sub-licensing rights, providing Aurora with the exclusive rights to EnWave’s patented REV™ drying technology for the production of cannabis materials in the European Union, excluding Portugal (the “European License”). Aurora announced its intention to purchase an additional 120kW REV™ machine for its European operations. Additionally, Aurora secured a non-exclusive sub-license to use REV™ technology in Canada, signed an intellectual property agreement with the Company and made a $10 million strategic investment into EnWave.

Aurora’s exercise of its South American license option reflects Aurora’s global footprint and its intention to pursue widespread adoption of the REV™ technology throughout its global derivative manufacturing operations. Aurora continues to hold an exclusive option to license REV™ technology for cannabis in Australia.

Benefits of REV™ Technology in the Cannabis Industry

EnWave’s patented REV™ technology is a rapid, low temperature, continuous drying method that maintains the optimal terpene profile, flavour, as well as other product attributes during the drying process. The company’s vacuum-microwave technology enables uniform drying with flexible moisture content, unattainable with freeze drying or air drying.

In the cannabis industry, REV™ technology provides for capital expenditure savings on drying space (smaller footprint) and related HVAC investments, as well as the ability to free up space, which can be repurposed to increase the economic output of each facility. Furthermore, EnWave’s REV™ technology reduces drying time from 5-7 days to less than two hours, resulting in significant working capital savings and speed to market of product. The technology has certain additional benefits, including the support of industrial scale flow-though, accelerating the ability for large-scale processing of cannabis and CBD-rich biomass into intermediate or finished product.

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