Halifax, Nova Scotia – (June 2, 2022) – Sixth Wave Innovations Inc. (CSE:SIXW) (OTCQB:SIXWF) (FSE:AHUH) (“Sixth Wave” or the “Company”) is pleased to announce signing a Memorandum of Understanding (“MOU”) with Advanced Extractions Systems Inc. (“AESI”) for an exclusive worldwide royalty bearing license to the Company’s Affinity™ cannabis extraction technology (the “Transaction”). The Company has been working closely with AESI on the design and manufacture of its Affinity™ hardware. Affinity™ provides a vertical integration opportunity for AESI and allows AESI a comprehensive offering for extraction to purification. Moreover, AESI has a solid track record in the cannabis industry and has successfully expanded into other botanical and nutraceutical markets. These new markets will also require extraction and purification services and will effectively open additional markets for the Affinity™ technology and Sixth Wave’s patent pending molecularly imprinted polymer (MIP) solutions. This MOU is the result of initial due diligence conducted by both companies to assess the value and strength of the Transaction. As part of the overall structure, Sixth Wave will work with AESI to help transition to a publicly traded company.
Dr. Jonathan Gluckman, President, and CEO of Sixth Wave notes “AESI represents a significant increase in the ability of Sixth Wave to introduce and support faster market penetration of Affinity™ systems. AESI has a complete engineering design and manufacturing team, customer support, sales, marketing, installation and service base that would otherwise all have to be grown inside Sixth Wave. Licensing the Affinity™ technology allows Sixth Wave to focus on core technology development to expand and diversify offerings with a direct pathway to monetizing those developments within a mature production and sales infrastructure. We are very confident that the relationship will result in a faster and more successful launch of Affinity™ and provide a lucrative licensing and royalty stream.”
Peter Toombs, CEO of AESI adds “AESI has a strong history providing extraction solutions to the cannabis and hemp industries and has started to see new contracts and successes in extraction of other botanicals and nutraceuticals. Adding the Affinity™ technology to our offerings provides unique competitive advantages to AESI in cannabis and other markets as it will allow us to impact a greater portion of the equipment used in processing along with technological advantages in both extraction and purification. Moreover, the continued development relationship that will be part of the transaction will allow the two companies to effectively address emerging markets such as psychedelics and other high value molecules. The molecularly imprinted polymer (MIP) technology which is the core of Sixth Wave will be able to be brought to market much faster with the added systems engineering, sales, and support infrastructure within AESI”.
General Terms of the MOU include:
- Exclusive worldwide royalty bearing license to the Affinity™ technology for cannabis, botanical, and psychedelics purification.
- Options to license Affinity™ applications for additional botanicals and nutraceuticals.
- Upfront license fee to include cash and equity in AESI.
- AESI would agree to pay an annual percentage royalty to Sixth Wave on a monthly basis for any leases it sells of each AffinityTM unit.
Detailed terms related to the Transaction are being negotiated by the parties with the expectation that a definitive license agreement will be completed within sixty days. The Transaction is contingent on a successful public listing of AESI. The public listing of AESI is contingent on successfully negotiating a term sheet with interested parties, complete due diligence, and regulatory approval.
Thank you for your continued support.
Dr. Jonathan Gluckman
President/CEO
Sixth Wave Innovations Inc.
https://sixthwave.com/sixth-wave-signs-mou-for-exclusive-license-to-affinity/
