Aurora Cannabis Inc. ACB and EnWave Corporation NWVCF announced Wednesday that they have entered into a royalty bearing commercial license agreement.
What Happened
Aurora will be provided exclusive rights to EnWave’s patented drying technology, Radiant Energy Vacuum or REV, in the European Union with the exception of Portugal.
Aurora also secured license options in Australia and South America excluding Peru. The deal is pursuant to minimum REV machine purchase order requirements, the companies said.
In Canada, the companies entered into a non-exclusive sub-license to use REV technology.
Aurora has also made a $10-million strategic equity investment in EnWave.
Why It Matters
Aurora will share royalties from the sublicensing of EnWave’s patent portfolio. The percentage was not disclosed.
In a press release, the companies elaborated on the mutual benefits of the partnership.
"EnWave's technology offers very significant benefits that further improve the economic returns on our Sky Class facilities," said Aurora CEO Terry Booth.
"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."
EnWave CEO Brent Charleton said EnWave's growth is accelerating, and the company is "delighted" to have Aurora as an investor, partner and collaborator.
"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."
What’s Next
The companies announced that Aurora placed orders for EnWave REV systems for two of its Canadian facilities and intends to buy additional technology for its Denmark facility within the next 60 days.
Related Links:
Signs An Aurora Cannabis Technical Breakout May Be Imminent
Aurora Cannabis Expands Testing Capabilities With Chemi Pharmaceutical Acquisition
Photo by Avriette/Wikimedia.
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