Aurora Cannabis has entered into a deal which grants it the exclusive rights to EnWave’s patented Radiant Energy Vacuum (REVTM) drying technology for the production of cannabis materials in the European Union, excluding Portugal.
Aurora has also secured exclusive license options for both Australia and South America, excluding Peru, exercisable pursuant to minimum REV machine purchase order requirements.
Additionally, Aurora has signed a non-exclusive sub-license to use REV technology in Canada.
To further cement the economic alignment between the companies, Aurora has made a C$10 million strategic equity investment in EnWave.
Pursuant to the terms of a share purchase agreement between the parties dated April 25, 2019, Aurora has purchased 5,302,227 common shares in the capital of EnWave (the “EnWave Shares”) at a deemed price of $1.886 per share.
In addition, Aurora has placed a purchase order for two of EnWave’s 120kW REVTM dehydration systems for its Aurora Sky and Aurora Sun facilities in Canada, as well as the intention to purchase a third 120kW REVTM dehydration system for its Aurora Nordic facility in Denmark within sixty days.
“EnWave’s technology offers very significant benefits that further improve the economic returns on our Sky Class facilities.”
Terry Booth, Aurora
The REVTM dehydration systems will be used to increase throughput of material for extraction and use in derivative cannabis products. Aurora has also acquired a 10kW pilot-scale REV machine for product development, protocol development and R&D.
“EnWave’s technology offers very significant benefits that further improve the economic returns on our Sky Class facilities,” said Terry Booth, CEO of Aurora.
“The technology provides us with industrial-scale flow-through, reducing working capital requirements, accelerating time to market from harvest, as well as increasing our ability to produce bulk-sale cannabis for extraction and use in derivative products. Our ownership interest in EnWave and the exclusive license arrangement in many of our current and target markets creates the potential to generate additional financial synergies.”
Brent Charleton, CEO of EnWave, stated, “EnWave’s growth continues to accelerate, and we are delighted to have Aurora as an investor, industry partner and technology collaborator to further the enhancement and propagation of EnWave’s REV drying technology.
“This partnership brings together two innovation leaders in the cannabis industry, and we look forward to working closely with the team at Aurora to deliver further value to our stakeholders.”Cannabis Business Worldwide