VIDEO: EnWave Corp (CVE:ENW) Rapid Dehydration Technology Application for Cannabis

EnWave Corp (CVE:ENW) (OTCMKTS:NWVCF) (FRA:E4U) has developed a proprietary low-temperature dehydration technology that can quickly remove moisture from organic materials, such as cannabis, without damaging the material profile. CEO Brent Charleton explains that EnWave licenses its technology to food manufacturers, pharmaceutical manufacturers, and licensed cannabis producers. EnWave combines vacuum and microwave technology to create a low-temperature drying environment that works for both the combustible product and for extraction, maintains 100 percent retention of CBD and THC, and typically takes less than one hour to complete. Charleton reveals EnWave already has a commercial license with Tilray (NASDAQ: TLRY) (FRA:2HQ) and plans to market its technology to other LPs.

Transcript:

James West:   Hey, welcome back to Midas Letter Live. My guest in this segment is Brent Charleton, CEO of EnWave Corporation, trading on the TSX-V under the symbol ENW. Brent, welcome.

Brent Charleton:   Thanks very much.

James West:   Brent, give us an overview: what is it that EnWave does?

Brent Charleton:   EnWave has developed a proprietary low-temperature dehydration technology that can remove moisture very quickly, and gently, from organic materials. And marijuana or cannabis is one material that we excel in drying very quickly.

James West:   Interesting. So you’re in the business of drying cannabis for LPs?

Brent Charleton:   We are in the business of licensing out our intellectual property, which protects the machines that we sell to various food manufacturers, pharmaceutical manufacturers and, more recently, cannabis licensed producers in Canada.

James West:   Interesting. And so the radiant energy vacuum, I guess, is at the core of this technology?

Brent Charleton:   That’s right. Yeah, we combine vacuum with microwave and create a low-temperature drying environment that is homogeneous, so in cannabis, we can get down to the 8 to 15 percent threshold for combustible product, or, if you want to dry down to 1-2 percent for the purpose of extraction, we can also do that very efficiently.

James West:   Okay, and so companies that want to use your technology just pay you a licensing fee and you send them a specification?

Brent Charleton:   Yeah. Typically how our partnership operation works is that we will do test work with the licensed partner to prove, you know, the quantifiable measures which will justify the licensing fees for using our drying technology. Some of the other benefits is reduced footprint of drying; the time, typically, is less than one hour to go from cut product to again, a shelf-stable, either combustible product or product used for extraction.

James West:   Sure. So how many LPs are using your technology right now?

Brent Charleton:   Currently we have a commercial license signed with Tilray. They purchased two continuous large-scale lines, one for installation at their Inniskillin facility in Ontario, and the other for their Portuguese operations, as well as a small, I’d say pilot unit for their Nanaimo facility. We’re also testing actively with three other major players in the space, and have other, I would say, more preliminary discussions with about nine others.

James West:   Okay, so that’s great. So then, how long have you guys been doing this technology?

Brent Charleton:   A long time, a long time.

James West:   Okay.

Brent Charleton:   So it originated out of University of British Columbia, but it wasn’t truly commercial until about 2012, and then it still took some time to implement the business model, the licensing, the royalty business model, with mainly food manufacturers, and more recently, we found or surfaced value for our partners in the cannabis space, which is starting to proliferate.

James West:   Yeah, fantastic. Where does the technology originate?

Brent Charleton:   So it was developed at the University of British Columbia by our ex-CEO, Doctor Tim Durance, and a group of very talented food scientists and engineers. And then with the help of capital raised through the public markets, they were able to scale up that technology to the point where we started to satisfy these global CPG companies’ needs, and also in the pharmaceutical space for vaccination dehydration and probiotics, etcetera.

James West:   I see. And so, what is the, like – so this thing can, what rate of processing can it handle?

Brent Charleton:   So a single continuous line can produce about 45 metric tonnes of dried cannabis per year, running an 8-hour shift, assuming 50 weeks of operation. So it can dry a lot of cannabis very quickly.

James West:   So does it do it obviously faster than if you just left it out drying?

Brent Charleton:   Exactly, and that’s the whole point, is that we can dry, again, in under one hour, and also it’s a continuous process. So theoretically you could run that machine 34/7 days a week if the need is there, with no downtime.

James West:   Okay, so your plan is to market this to LPs around the world as they proliferate in this new cannabis regime?

Brent Charleton:   Yeah, exactly. So we want to assure that they’re fully aware of the immense value proposition of using our technology over the traditional means. You know, the quantifiable data is available in regards to 100 percent retention of CBD and THC, as well as terpene retention that has been reviewed favourably on smoking panels that are being conducted.

James West:   So the effect of drying it out this way does not negatively impact the premium flower aspect for a consumer?

Brent Charleton:   Exactly, and for production purposes also, because we offer a tray system as well as a drum system. The tray system has an open-flower aspect to the dried product so it’s better for trimming, post-dry; the drum system typically you want to have the trim done before you’re drying the flower, otherwise it will wrap around. So we have some multiple mechanisms to do the drying.

James West:   Huh. Okay, so how do you get other LPs aware of this and using this technology?

Brent Charleton:   Well, a lot of knocking on doors and making phone calls and connecting with the right people, and I think we are connected with many of the right people in the industry today, and next steps after making contact is having them out to Vancouver to our pilot plant facility, show them the machinery firsthand. We’ve got dozens of commercial installations globally, in the food space mainly. So we have some actually in Southern Ontario here that can be made available for viewing.

James West:   Okay, great. Well then, we’ll help spread the message, Brent. That’s a great introductory interview, and we ill come back to you in a quarter’s time and see how you’re doing. Thanks for joining me today.

Brent Charleton:   Great, thank you very much, James.

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Original article: VIDEO: EnWave Corp (CVE:ENW) Rapid Dehydration Technology Application for Cannabis

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