EnWave Corp (TSX-V:ENW, OTC:NWVCF) has struck a licensing agreement with Solve Solutions Ltda of Brazil, giving the Canadian company a stronger foothold in South America’s fast-growing dried foods market.
The deal grants Solve, which does business as Solve Foods, exclusive rights to use EnWave’s patented Radiant Energy Vacuum, or REV, technology to dry fruits, vegetables and cheese in Brazil.
Solve also purchased a 10-kilowatt REV machine that it had previously been leasing, the companies said Monday.
Solve, based in Santa Catarina, makes premium dried ingredients such as strawberries, pineapples, carrots and cheese. It supplies both private-label food brands and ingredient buyers in Brazil and abroad.
Under the new licence, the company is required to buy a larger-scale REV machine within six months and meet minimum royalty payments in order to keep its exclusivity.
REV is a microwave-based dehydration system developed by Vancouver-based EnWave. The company says it can dry products much faster than conventional methods such as air or freeze drying, while retaining more flavour, colour and nutrients.
For food producers, faster drying can mean lower costs and shorter time to market, making it an attractive alternative to older technology.
Royalties from licences like the Solve deal are central to EnWave’s business model. Rather than simply selling equipment, the company collects ongoing fees tied to product sales made with its technology.
It already has more than 50 licensing partners in 24 countries across five continents, working in industries ranging from packaged snacks to pharmaceuticals and cannabis.
Solve Foods operates as part of Troyes Participações SA, a Brazilian holding company with interests in textiles and building products.
Its food division has been expanding into premium dried fruits and vegetables, aiming to fill gaps in the local market where traditional drying methods fall short.
By pairing with EnWave, Solve is betting that REV technology will help it bring new products to market with better quality and consistency.
EnWave, traded on Toronto’s TSX Venture Exchange and in Frankfurt, has been steadily building out its network of international partners.
Deals like this one provide recurring revenue from royalties and can lead to larger machinery sales, giving the company both upfront and long-term income streams.
The companies did not disclose the financial terms of the agreement.