Dehydration technology can change the world, and quickly. We are not exaggerating here. Dry food is something we are already familiar with, but technology is now pushing the boundaries of possible.

The two main areas where this technology has recently been used are the drying of foods-such as fruits, vegetables and dairy products-and hemp/hemp. For example, REV has been used to maintain active cultures in puffed yogurt snacks, which cannot be achieved by conventional drying at high temperatures.

EnWave is already a recognized leader in the development and deployment of this technology, but it has been receiving the attention of many investors outside of Canada.

The company basically has two divisions-EnWave itself uses its dehydrator to manufacture and sell or license its technology worldwide, and these machines vary in size. It also owns a second division, NutraDried Food Company, which manufactures, markets and sells all natural dairy snack products in the United States.

We are also very interested in the company's work in the pharmaceutical field. Here, it is possible to dry the vaccines so that they can be transported cheaper and more efficiently. This may also mean that vaccines can be shipped without refrigeration.

Yes, you read it right. In an era when we are shipping vaccines around the world at huge costs, EnWave Corporation's REV technology shows the promise of shipping vaccines without refrigeration. This also applies to other drugs.

REV provides the pharmaceutical market with opportunities to transport vaccines at cheaper prices, to produce vaccines continuously (with fewer bottlenecks), and to use smaller facilities. When we see the possibilities it offers for the distribution of vaccines to developing markets, they seem huge.

EnWave recently announced that it will cooperate with MedImmune Limited, a subsidiary of AstraZeneca, through a material transfer agreement to promote the use of REV technology in the dehydration test of monoclonal antibody preparations. The proof-of-concept trial started this summer. We believe that this transaction has a significant impact on EnWave, as monoclonal antibody therapy has been used to help Covid victims. EnWave has also established a relationship with Merck on the drying of several vaccines, and has established a strategic partnership with GEA Lyophil, a global leader in the field of drug freeze drying.

REV also greatly shortens the drying time of the product, from a few days to a few hours. Currently, many food manufacturers still rely on air-drying or freeze-drying-for example, it may take more than 72 hours for pineapple to freeze-dry. With REV technology, this can be done in two hours. This is a huge productivity margin. For reference, it still takes about 13 hours to dry the pineapple.

The transaction flow through EnWave looks impressive. It recently signed an agreement with an undisclosed dairy company in Colombia to support the production of shelf-stable cheese snacks. EnWave usually sells its technology through machines, and the company can install these machines as part of its manufacturing process. In the case of Colombia, it also granted an exclusive agreement related to minimum royalties and machine order requirements.

In the last quarter alone, EnWave signed multiple agreements with food manufacturers and distributors, demonstrating the need for its core dehydration technology. This includes a commercial license agreement with Europe Snacks Group for royalties and a global strategic partnership with Dole Worldwide Food & Beverages. The company even installed a 10kW machine for the US Army at Bridgford Foods Corp for the advanced development of close combat assault ration field testing.

A similar agreement was recently signed with Medical Kiwi, and the company also purchased a GMP REV machine for drying cannabis flowers for medical products.

Especially for the cannabis industry, this technology has special value-its fast, gentle drying process can uniformly remove water from the cannabis at a selected low temperature below the decarboxylation point. This means that cannabis derivatives retain more terpenes and equivalent or higher cannabinoids than traditional shelf or room drying methods.

EnWave recently released its latest financial report (as of June 30): It reported a consolidated net profit of CAD 670,000 for the third quarter of 2021, and a net loss of CAD 1.16 million for the third quarter of 2020. This is a significant increase in business momentum, and the company attributes it to the continued commercialization of its technology in all three product areas. Comprehensive revenue increased by 23%, while total revenue from REV machine sales increased by 121%, which is impressive.

It should be noted that EnWave is continuing to conduct advanced research on dehydration technology for a series of products-for example, it is experimenting with its TerpeneMax advanced drying protocol for the hemp market, as well as product development research in the field of all-natural cheese snacks, through its NutraDried Subsidiary. This is a complement to its work in the field of biomedicine.

We believe that EnWave Corporation has many factors that can drive it.

First, it has proprietary technology, which is clearly in demand and can be deployed on a global scale. Secondly, with increasing pressure on the supply chain, REV technology has huge advantages for manufacturers and distributors in terms of time, cost and productivity. Its application potential in the pharmaceutical market is huge. Finally, the latest set of performance looks very positive, showing that the company has the ability to make substantial profits under the pressure of the pandemic.

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Please note that this article does not constitute investment advice. Investors are encouraged to research or consult professional advisers in advance.

Stuart Fieldhouse has 25 years of journalism and marketing experience, including serving as a wealth management editor for the Financial Times Group, covering capital markets and international private banking, as well as an investment banking reporter for Euromoney in Hong Kong. He is the founding editor of Hedge Fund Magazine.

Stuart worked at CMC Markets and supported the restart of its global financial spread betting and CFD trading platform. He is also the author of two books on trading published by the Financial Times Pearson Press. Stuart is based in The Armchair Trader's London office and continues to advise fund managers, private banks, family offices and other financial institutions.

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Like the pharmaceutical industry and vaccines, PCR reagent testing may also be used. Various testing companies use dry reagents for immediate testing and provide shelf-stable storage. During the current pandemic, diagnostic testing is essential. Cooperation with GEA Lyophil, a global leader in the field of pharmaceutical freeze-drying, may be the key to entering this market. As shown in the article [link has been deleted, search for "Haverford Freezing PCR Reagents"], freeze-drying is the key to freeze-drying technology currently used in the industry.

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