Sixth Wave Innovations (SIXW.C) announced it had shipped its Discovery Affinity system to Retro Cannabis and Hemp Extracts pursuant to an LOI announced on May 19, 2022. The system is expected to be delivered to Sixth Wave’s Halifax, Nova Scotia facility and taken to Retro the week of June 27 for installation and testing.
The company also announced shipping its Affinity polymer to Advanced Extraction Systems (AESI) to begin packing full scale production columns and begin the next phase of fluid dynamics testing and equipment configuration. This transaction follows an MOU announced on June 2, 2022 which outlined an exclusive worldwide royalty bearing license to Sixth Wave’s Affinity cannabis extraction technology.
The deal also gives AESI the option to license Affinity applications for additional botanicals and nutraceuticals. As a result of the agreement, AESI will pay an annual percentage royalty to Sixth Wave on a monthly basis for any leases it sells of each Affinity unit.
Currently the global cannabis extraction market is valued at $10.74 billion USD and is expected to surpass $38.53 billion by 2030 at a CAGR of 17.3%.
Company president and CEO, Dr. Jon Gluckman, commented, “This shipment is a significant milestone for the Affinity System as we begin transitioning activities to our licensing partner AESI. The Discovery System will facilitate cannabis separation and purification demonstrations as well as limited production capability. This installation will allow hands on interaction at a scale that is manageable outside of a full-scale production facility. In addition, the Affinity beads used to populate the production column will allow testing and fine tuning of the fluid dynamics and monitoring instrumentation prior to deployment in the field. No major issues are expected.”
In other news, the company announced it had granted 300,000 options to the independent directors and 600,000 options to advisory board members. The options are exercisable at $0.15 CDN per share and will expire June 10, 2027. One third of the options will vest after six months, with an additional third vesting every six months thereafter until fully vested.
At the end of May, Sixth Wave announced its AMIPS technology was 250 times more sensitive than commercial rapid antigen tests in covid virus protection detection with no cross-reactivity. The results were produced in collaboration with the globally recognized Li Ka Shing Institute of Virology at the University of Alberta.
The world market for covid diagnostics was valued at $97.4 billion USD in 2021 and is expected to expand at a compound annual growth rate of 7.7% from 2022 to 2030.
Sixth Wave reported a $1.89 CDN million net loss and a cash total of $271,008 for the six months ending February 28, 2022. The company currently trades at $0.065 per share for a market cap of $8.78 million.
–Gaalen Engen
