2. Company Radiant Energy Vacuum (“REV”) Dehydration Technology Vancouver-based industrial technology company, UBC spin-off New proprietary method of drying food, bulk liquids, biological and pharmaceutical material Large, diverse global markets use drying to extend shelf-life, reduce shipping & storage costs, create novel products Mission is to introduce a new global dehydration platform to compete with freeze drying, air drying & spray drying
4. Commercial Progression Technology Development Targets as of January 2011 Commercial machine with dried capacity of up to 100 Kilo per hour sold to CAL-SAN, testing initiated with Nestlé & Bimbo in 2010 Expected time required to complete pilot machine testing, Danisco licence agreement and secure first commercial machine order for delivery in first half of 2012 FDA GMP regulatory approvals required for therapeutic pharmaceutical applications
5. Commercialization Strategy Two tier approach for broader market acceptance Strategic Plan: start with collaborations, build a royalty stream from technology licenses,outsource manufacturing of REV machines Tier One: Strategic collaborations with leading multinationals, exclusive agreements for specific global market segments, targeted annual royalties $25-$50M per division NestléSA, DaniscoAS, Grupo Bimbo SA & Grimmway Farms Tier Two: Entrepreneurial or regional partnerships with limited territory or product exclusivity, targeted annual royalties of $1-$5M per partner CAL-SAN Enterprises, IFS/Smartpac
6. Intellectual Property Strategy Supporting the Strategic Plan ENW owns 7 patents/pending plus exclusive world-wide rights to 7 patents filed by UBC (Dr. Tim Durance): 2016 - 2024 IP protection strategy: patent in big markets where machines are likely to be installed, or product sales may occur - India, China, Brazil, EU and North America, possibly other countries depending on the application PCT route gives 2 ½ years to decide where to file. Start with US provisional while invention is refined, then file PCT within 12 months. ~ 4 months later, the PCT patent examiner conducts search and gives written opinion. National patent filings in selected countries 30 months after the provisional application. Takes a further 1-5 years to obtain patents.
7. Collaborations Give & Take with Tier 1 & Tier 2 Partners Global collaborations help move us along the Technology Adoption Life Cycle* (innovators, early adopters, early majority, late majority, laggards): Detailed knowledge of industry needs, “pain” and costs Product & market expertise Credibility with investment community to raise funds on public markets Credibility with target markets where brand names sign on publicly
8. Collaborations Give & Take with Tier 1 & Tier 2 Partners Strong base of intellectual property Exclusivity of testing for specific products/regions/timeframe Public collaboration announcements Investor confidence & increasing levels of financing Cash for in-house technology development Ownership of all IP Grant exclusive licenses for royalties
9. Open Innovation Lessons learned – the bad news first Important to establish clear property rights before or at first meeting Everything takes longer than you think, esp. with large companies Smaller companies may not have the horsepower or experience needed to bring products to market Confidential agreement terms difficult for investors (but good for us)
10. Open Innovation Lessons learned – now, the good news Collaboration benefits: Farm out work to external facilities/experts to reduce costs Third party technology endorsement Increase speed to market with internal champions at multinationals Assistance with regulatory approval process Help design best machine to meet industry needs (batch vs continuous, size, processing speed, necessary savings to justify investment) So far, no regrets. Each collaboration has served a valuable purpose and we learn from every one.
11. Open Innovation Selected examples Aridis Pharmaceuticals – Early credibility with investors, learned about sector, provided prototype design input, too small for larger collaboration DaniscoAS – First global collaboration, great partner, good credibility Bioseutica PLC – Good signal to huge market in encapsulation Nestlé SA – Best possible reference in food industry SRC – Detailed feedback on design, help us keep costs low
12. Contact Details Jennifer Thompson V.P. Corporate Development & Investor Relations P: (604) 603-6549 E: jthompson@enwave.net www.enwave.net | TSX-V: ENW | FSE: E4U