EnWave Corp (TSX-V:ENW, OTC:NWVCF) CEO Brent Charleton talked with Proactive about the company’s latest commercial update involving its long-term partner Procescir.
Charleton shared that Procescir has now committed to expanding its use of EnWave’s Radiant Energy Vacuum (REV) technology, with a large-scale machine set to be delivered in July.
He added that Procescir has also signed a robust supply agreement with a major U.S. snack brand, which will utilise much of the unit’s production capacity.
Proactive: All right, welcome back inside our Proactive newsroom. And joining me now is Brent Charleton, the CEO of EnWave Corp. Brent, it's great to see you again. How are you?
Brent Charleton: I'm great, and hope you're the same.
Doing very well, thanks very much. You put out the news talking about increasing the scope with a very familiar client of yours. So I'll let you take it from there.
Sure. Procescir is a company that we've been working with for several years now, more so on a developmental front. More recently, they've committed to a large-scale version of our Radiant Energy Vacuum (REV) machinery, which is set to be delivered in July of this year. They have also secured a robust supply agreement with a very well-known snack brand in the U.S. that will use most of that manufacturing capacity.
They came to us and requested a longer list of products they could commercialize using this machinery, given the amount of interest they're seeing from potential clients. The amendment we announced this morning reflects that. We've now given them the ability to engage with several new customers as soon as that large machine comes online.
In addition, they purchased some auxiliary REV equipment, mainly for the inlet and outlet of the machine, to make it more functional and automated. The value of this equipment is about CAD 170,000, which is comparable to one of our smaller ten-kilowatt units and delivers solid margin. They're set up for success now.
Are they seeing more companies interested in the technology? What's driving all of this?
Yes, twofold. Their own internal business development efforts are yielding significant interest. Secondly, us playing matchmaker — we introduce them to a number of large branded food companies who don't want to invest in the machinery themselves but want to procure higher quality materials for ingredients or snacks.
This is something you've been working on a lot over the past year. We've talked about the successes, and I guess these kinds of wins show other clients what’s possible.
Exactly. The momentum is certainly in our favour right now for new sales. The intensity of discussions for potential new sales is improving. In the next several months, we hope to confirm more deals and schedule more meetings to talk about those deals.
So in essence, the pipeline continues to be robust.
Exactly.
Quotes have been lightly edited for clarity and style