EnWave sells NutraDried assets

EnWave Corporation has agreed to sell certain assets of NutraDried Food Company LLC to Creations Foods U.S. Incorporated, a successful healthy snacking company located in Washington State. Creations Foods is a portfolio company of Rio Investment Partners, a Canadian firm that focuses on innovation in the agri-food space. The Asset Sale to Creations Foods includes the Moon Cheese® brand, as well as other NutraDried trademarks, auxiliary equipment, and saleable inventory.

EnWave has also executed a royalty-bearing commercial license agreement with Creations to produce cheese snacks in the United States (the “License”). Creations purchased one of the two 100kW Radiant Energy Vacuum (“REV™”) machines installed at NutraDried’s facility (the “REV™ Purchase Order”). The REV™ Purchase Order will generate a margin commensurate with EnWave’s target margin for typical REV™ machine sales. EnWave intends to strategically re-sell the second 100kW REV™ machine to either a current or new licensed royalty partner in the coming quarters and has already re-sold the 10kW REV™ machine from NutraDried to a current royalty partner.

Total consideration for the License, REV™ Purchase Order, and Asset Sale was USD2 million, plus the cost of select saleable inventory, which will be paid over two years. The majority of the proceeds will be received within 270 days and are expected to more than cover the total cost of the orderly wind-down and dissolution of NutraDried.

Creations Foods will takeover the production, sale, and distribution of the Moon Cheese® product portfolio. All NutraDried customers have been informed of this transition and both parties are optimistic about the future for the better-for-you snack brand. Creations Foods will also entertain bulk dried cheese opportunities that complement their branded product business. Pursuant to this operating transition, NutraDried has assigned its lease to Creations Foods beginning April 1, 2023.

The License, REV™ Purchase Order, and Asset Sale will immediately improve EnWave’s cash royalty generation potential and allows for the Company to allocate all resources to grow its technology licensing business. EnWave has a strong pipeline of prospective new large-scale REV™ machine orders targeted for fiscal 2023 and several royalty partners have material REVdried™ product launches planned in the next nine (9) months.