EnWave CEO discusses licensing & revenue model – ICYMI
EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) earlier this week outlined a significant milestone in its global expansion strategy, announcing its first commercial license agreement in Africa through a new partnership in Egypt.
In an interview with Proactive, chief executive Brent Charleton said the agreement represents the company’s entry into a region with strong fundamentals for its dehydration technology, including access to high-quality, low-cost raw materials that can be converted into value-added products for export.
Proactive: The last couple of times we’ve spoken, you’ve been all over the world signing deals. This time, you’re in Egypt with DryHub. This is a really interesting one.
Brent Charleton: This is our first commercial license granted on the continent of Africa, which is really exciting for us. We do have a few other leads in different countries regionally where you can harvest high-quality, low-cost raw materials, turn them into value-added ingredients or products, and sell globally.
We’re really excited about this deal, which actually came out of attending the Gulf Food Manufacturing Show two years ago. It took some time to work out the agreement and put together a plan for expansion, but we’re looking forward to moving ahead.
They’re buying a machine and moving into commercial production. Can you tell me more about what they’ll produce and where they’ll sell?
Their focus initially will be producing dried fruits, vegetables and herbs. They already have a list of domestic customers. Over time, they plan to broaden distribution into the Gulf region, although that may depend on regional stability.
They want to start building manufacturing capacity now in preparation for improved conditions in the future.
There’s also more to this deal in terms of additional machinery and royalties. This isn’t just a one-off?
Correct. It was an intense negotiation that included plans for expansion and realistic timelines. They’ve committed to purchasing additional REV equipment to retain exclusivity in Egypt for producing these products.
We’re aiming to support their growth and see further machine orders in the near term.
On logistics, how do you manage supplying machines, especially with a growing pipeline?
We typically keep several 10kW units in inventory, around three to five at any given time, ready for quick deployment. If demand increases, we can scale that.
We also have two large-scale machines nearly completed and ready for deployment. Once those are sold, we begin building the next units to accelerate installation and, ultimately, royalty generation.
Quotes have been lightly edited for style and clarity
