The explosion of the cannabis industry has led to the creation of many sub-industries, which are now involved in providing services that are necessary for the industry and EnWave Corp (OTCMKTS:NWVCF) (CVE:ENW) is one such company.
The company’s core business is producing and selling dried cheese and manufacturing machines that help in completely dehydrating natural substances like cannabis.
EnWave licenses these machines to companies in the cannabis space and last month reached a deal to license their equipment to Aurora Cannabis (NYSE:ACB), which is among the biggest marijuana firms in Canada.
EnWave Corp (OTCMKTS:NWVCF) (CVE:ENW) stock went on a tearing bull run and rose by as much as 25.4% in the month of April.
Shares of NWVCF are among the top winners in the cannabis industry and after its superb rally in April, the stock has now clocked gains of 83.1% in 2019 alone.
In the first quarter of fiscal 2019, EnWave’s revenue jumped 73% year-over-year, and, as with the previous quarter, earnings per share came in at breakeven. Although EnWave is still a small company, it has registered excellent growth and seems to be on an upward surge following the tie-up with Aurora Cannabis.
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EnWave Corp (OTCMKTS:NWVCF) (CVE:ENW) has not announced a date for the release of its fiscal second-quarter earnings, but it should be sometime late this month.
Aurora Tie Up
The tie up with Aurora Cannabis is perhaps one of the biggest reasons behind the optimism in the EnWave stock. Aurora is one of the biggest producers of marijuana in Canada and hence, the tie up with EnWave gives the latter a hugely strategic advantage.
Additionally, Aurora invested in EnWave and its $10 million investment in the company gives them a 4.9% stake. As soon as the partnership was announced, the EnWave stock went on a massive rally and rose as much as 24.5% in three sessions of trading. However, it is also important to note that the partnership is an exclusive arrangement and it remains to be seen what effect that has on the EnWave’s expansion plans.
Shares of EnWave were up 1% at $1.80 in Monday’s trading session.
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Disclosure: we hold no position in $NWVCF, either long or short, and we have not been compensated for this article.