EnWave Announces Restructuring and Management Changes at NutraDried Food Company
VANCOUVER, British Columbia, Feb. 18, 2021 (GLOBE NEWSWIRE) — EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) announced today material changes at its wholly-owned subsidiary, NutraDried Food Company, LLC (“NutraDried”). The changes are designed to improve margins and streamline operations across the business.
Reduction of Personnel and Third-Party CostsFollowing from a comprehensive review, EnWave is restructuring NutraDried to reduce certain management positions and production staffing. The restructuring will affect approximately 22 employees. Additionally, NutraDried will reduce or eliminate the use of non-essential third-party consultants and contractors as part of operations.The reductions to staffing are expected to lower annual personnel costs to the Company by approximately C$2 million resulting in an approximate 30% reduction of the total full-time employee expenses. EnWave will incur a one-time severance charge in Q2 2021 of approximately C$600,000 related to this restructuring.This restructuring is necessary to realign the cost structure at NutraDried relative to the size of its business.CEO SuccessionEnWave has commenced a search for a new executive leader at NutraDried to replace Mr. Mike Pytlinski, NutraDried’s former CEO, who is no longer with the company. It is intended that the new leader will bring a wealth of strategic and hands-on consumer packaged goods industry experience to the organization and complement the existing team.EnWave is pleased to announce the appointment of Mr. Dan Henriques, the Company’s Chief Financial Officer, as the Chief Operating Officer at NutraDried. Mr. Henriques will serve in a dual capacity during the transitional period and will oversee the streamlining of operations at NutraDried.Streamlining OperationsThe changes announced are part of a plan to reduce expenses across NutraDried’s operations, regain focus on the core competencies of the business and to return the business to meaningful profitability through the use of REV™ technology again. Over the coming weeks the Company plans to take additional steps to further rationalize administrative costs at NutraDried, including reducing and refocusing the marketing strategy and target spending on areas that will maximize value.The objective is to return NutraDried to positive EBITDA and cash flows as quickly as possible while continuing to innovate and launch new REV™ products that align with consumer preferences. Part of the new strategy will include proactively seeking contract manufacturing opportunities to leverage the installed REV™ capacity. Recently, NutraDried secured a major contract manufacturing opportunity with a leading global snack company to supply REV™-dried cheese for a snack mix product. There are several additional private-label and contract manufacturing projects in NutraDried’s pipeline.About EnWave
EnWave Corporation, a Vancouver-based advanced technology company, has developed a Radiant Energy Vacuum (“REV™”) – an innovative, proprietary method for the precise dehydration of organic materials. EnWave has further developed patent-pending methods for uniformly drying and decontaminating cannabis through the use of REV™ technology, shortening the time from harvest to high-quality, marketable cannabis products.REV™ technology’s commercial viability has been demonstrated and is growing rapidly across several market verticals in the food, and pharmaceutical sectors, including legal cannabis. EnWave’s strategy is to sign royalty-bearing commercial licenses with innovative, disruptive companies in multiple verticals for the use of REV™ technology. The company has signed over forty royalty-bearing licenses to date in twenty countries world-wide. In addition to these licenses, EnWave established a Limited Liability Corporation, NutraDried Food Company, LLC, to manufacture, market and sell all-natural dairy snack products in the United States, including the Moon Cheese® brand, as well as to co-manufacture for third parties.EnWave has introduced REV™ as a disruptive dehydration platform in the food and cannabis sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. EnWave currently offers two distinct commercial REV™ platforms:nutraREV® which is a drum-based system that dehydrates organic materials quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour; and,quantaREV® which is a tray-based system used for continuous, high-volume low-temperature drying.More information about EnWave is available at www.enwave.net.
Mr. Brent Charleton, CFA
President and CEOFor further information:
Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: [email protected] Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management’s expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third-party claims referred to in this release are not guaranteed to be accurate. All third-party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.