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EnWave provides corporate update on operating subsidiary

(Globe Newswire) Vancouver — EnWave Corporation will commence an orderly wind-down and value maximization process for its operating subsidiary, NutraDried Food Company, LLC.

NutraDried’s financial performance through the past three fiscal years has deteriorated materially and, after assessing the long-term prospects for NutraDried, EnWave’s board of directors and executive management have determined that NutraDried will not achieve the performance standards that EnWave requires for future ownership and support.

NutraDried’s negative performance has been heavily linked to the abnormally high commodity block pricing for cheese, which combined with overall lower sales across several of its key distribution channels, are expected to continue in the near and long-term.

As a result, EnWave will explore and pursue a number of value maximizing options including, but not limited to, a joint venture with a seasoned industry operator, the sale of brand assets, and a sale of some or all of the capital equipment.

NutraDried intends to fulfill purchase orders from customers through the next few months pursuant to available inventory.

This process with NutraDried will allow EnWave to materially reduce expenditures previously dedicated to NutraDried and direct this capital toward advancing the core business strategy of the company. This process is expected to be completed in fiscal 2023. Management believes that the completion of this process will be cash neutral or cash positive to EnWave.

EnWave initially created NutraDried to demonstrate that its commercial-scale, continuous Radiant Energy Vacuum (REV™) dehydration machinery could operate consistently and reliably. This demonstration de-risked the adoption of REV™, helping to improve the success of EnWave’s commercialization efforts.

There are now more than 50 commercial license holders using REV™ technology to process food and cannabis products globally.